Jeffrey Hirsch, editor of the Stock Trader’s Almanac, says he expects the Dow Jones Industrial Average to reach 38,820 — well over triple its current levels — in a “super boom,” according to Bloomberg.
The Almanac compiles historical data to give investors insights into longstanding trends in the major market averages. Investors have differing views on the book’s value, because past information doesn’t always predict future market behavior. Hirsch says that new technology and a return of U.S. soldiers from Iraq and Afghanistan will spur the growth.
This is one of the biggest bullish predictions since James Glassman and Kevin Hassett’s Dow 36,000, a 1999 book that predicted an unmitigated rise in U.S. stocks — shortly before the dot-com bubble burst.
“This is fun reading, but it’s really not a practical analysis for me in any quantitative way,” one money manager told Bloomberg. We only hope Hirsch’s prognostication does not prove to be the contrarian indicator that Dow 36,000 was.