The Dow Jones Industrial Average (DJIA) awaits a greater bull market in 4000 says high profile Wall Street executives and strategists. Despite record-high stocks, investors are overlooking the momentum, technicals, and liquidity of the market.
# 1: Investors are not trusting the current Dow Jones rally
According to Julian Emanuel, managing director and chief equity and derivatives strategist at BTIG,many investors still do not believe in the bull market.
Based on data from Schroders, the $ 9 billion British investment giant, thecurrent bull market of the Dow Jones is the longest ever yetby a large margin.
Schroders analyst David Brett said:
It began in March and has been fueled by record-low interest rates and the easy monetary policies adopted by central banks which has made it cheap to borrow money.
despite the clear momentum of the Dow Jones, Emanuel emphasized that the majority ofInvestors are still cautious and lack confidence in the market.
Eventually, as the market enters a new year, he said that the S&P is likely to surge by another 23%, which would further boost the sentiment around the Dow Jones.
# 2: Strong technicals
Based on an indicator called the “bottom-up model,” Piper Jaffray chief market technical analyst Craig Johnson said that the US stock market still has significant room to expand in the coming year.
With expectations of a (multiple on consensus earnings, anadditional) ****************************************% growth in the S&P is anticipated by prominent technical analystsand chartists.
If the momentum of the stock market and the Dow Jones are supplemented with strong earnings in the first quarter of (************************************, it is likely to sustain the longest bull market in modern history.
Crucially, Johnson noted that bull markets do not wear off due to time. The stock market is not going to correct solely because it has been on an upward trend for a long time.
GIPHY App Key not set. Please check settings