Question

Where do you project the Dow will stand in May 2021? Min response 400-500 words please.

Answer 1

Our Dow Jones outlook is highly optimistic for 2020 and 2021. In 2020 the Dow Jones hit about 32,000 points. Its growth will start in 2021. expecting a Dow Jones crash in 2022. Investors should get the maximum from the Dow Jones forecast for 2020 and 2021 out of the bullish potential. Note that this other important item of our annual forecast sequence is that it paints a very good picture of our general market forecasts for 2020: bullish stock markets (not only this bullish Dow Jones forecast but all global stock markets), bullish peaks of precious metals, certain commodities bullish, very bullish crypto markets.

A high of 32,000 Dow Jones points in 2020 after which the index will grow even higher by 2021. This Dow Jones forecast is based on 2 leading indicators for 2020 and 2021: Treasury levels as well as the Russell 2000. The first one says 'risk on' is returning to stocks, the other one is continuing with 'risk on' as soon as the Russell 2000 index reaches 1625 points. Mapped the clear message from our 2 leading (risk) indicators in a top-down approach to Dow Jones charts. The monthly and weekly quarterly map confirms the. This suggest a very high level of reliability.

Pretty easy, rising rates indicate increased investor tolerance for risk. That's because of the inverse relationship between bonds and rates: the higher the lower the bond prices as investors flow to higher risk investments.

The long-term (monthly) 20-year Treasury Rates chart gives a very simple picture. Tariffs went through a crash of some 45 pcts between October 2018 and September 2019 (a period of 12 months). Levels fell back to their lowest in 2016. It's a big double bottom obviously. Tariffs are expected to avoid dropping, and push from here higher. It is an perfect system for capital markets in general, and particularly the Dow Jones

No matter how violent this Corona crash was, it defied the bull market in 2009, but the longer-term uptrend was not affected. Our initial Dow Jones 2020 forecast remains true even after the crash at Corona. It might not be reached within 2020 precisely, but rather a few months into 2021. That means Dow Jones forecast is still on track, as the Corona crash could slow it down. However, our prediction did not invalidate, quite the opposite.