Yesterday, I was one of the speakers for what once was called ‘career day’ at my daughter’s high school. These days, the official name is Kaleidoscope or something more catchy along those lines. Regardless, I talked about my job, gave some rudimentary advice, and, believe it or not, fielded a few questions. For my troubles, I got a hug, or three, and a loaf of really delicious banana nut bread. Truthfully, they didn’t have to give me anything. I was more than happy to do it.
One young man asked me about Dow 20,000, and whether such a lofty level was going to be an impediment to any future rally this year. You know, that is pretty good for a high school student, really good even. I answered him as I would have an adult during the Q&A session of one of my presentations: “20,000 is just a number. If it is a psychological barrier for some barriers, then so be it. However, stock prices ultimately come back to corporate earnings. Now, will corporate earnings continue to justify 20,000? That is a different question altogether.”
Then I asked him: what if I were to tell you I fully expect the Dow to be at least 50,000 by the time I retire? His eyes, and others, boggled a little. 50,000? Who would have thought that? Particularly in such a short period of time, because that guy is really, really old!
If I retire in 17 years when I am 65, I would be kind of disappointed if it weren’t 50,000. It is just math, and here is my prediction for the Dow Industrials 17 years from today: 53,887. However, I don’t plan to ever fully retire, as I would drive my wife absolutely crazy. …Read More…
The opinions expressed within this report are those of John Norris as of the initial publication of this blog. They are subject to change without notice, and do not necessarily reflect the views of Oakworth Capital Bank, its directors, shareholders, and employees.