Just in case you haven’t heard the news yet—the Dow closed above 13,000 for the first time in just about four years. A solid consumer confidence report helped push the index over this barrier for the first time since the financial crisis.
Now, a lot of people are wondering how much farther the Dow can go from here. Well, based on my research, I actually believe that the Dow is on track to climb above 14,200 by the end of 2012. That’s a prediction that absolutely shocked some of my subscribers when I made it in mid-December, when it represented a 16% climb for the broad market! And of course, if you put your money in fundamentally superior stocks, the sky is the limit during this Presidential election year.
Surprised? On the surface these may seem like lofty numbers. But let me put it into context for you. Let’s flash back to the year 1980. It was an election year, like 2012 is, and the S&P rallied 25.8% from January 1 to December 31. It wasn’t a straight ride north for the market, but it was a very profitable year.
With that being said, here’s to having more market milestones this year!