Dow to 100,000 in 2050. How would you trade it?
- Thread starter Good1
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We'll be lucky if we don't hit Dow 100,000 by 2015.
How would I trade that? Get my money out of the USA and move to Asia.
How would I trade that? Get my money out of the USA and move to Asia.
No, just goofing. If we see Dow 100K relatively soon, it will be because of hyperinflation and currency destruction. Nobody invested in the Dow will escape bankruptcy... so better to have your money AND YOUR ASS out of the USofA.
For the Dow to reach 100,000 in 2050 would be a return of 5.59%. Inflation alone will account for that.
1. Our actual inflation rate for the last 40 years has likely been 6-8%. Government lies about the inflation rate to mask their misdeeds. Another 40 years of 5.6% inflation would be a relative blessing. We would likely all suffer significantly, but it wouldn't be catastrophic.
2. 5.59% comes from 12,000 Present Value, 100,000 Future Value, 39 years, solve for "rate"... from my 20 year-old HP BA II calculator.
Wonder what the "real" inflation rate has been over the years? When the Toyota Land Cruiser first came out 1970(?), they were $2,795. I remember because I considered buying one. Today, they are $67,370. That's an 8.28% average annual increase over 40 years.
Some of that is improvement. MOST is merely inflation and buying power destruction.