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Jul
10
Jonathan Yates
Dow 100,000 in 20 Years, Predicts Ric Edelman
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Ric Edelman is one of the most prominent financial advisers in the country.  He is also one of the most bullish.  In a recent interview in Barron’s magazine, Edelman predicted that the Dow Jones Industrial Average could hit 100,000 in the next twenty years.   As the chart below shows, the performance of the Dow (NYSE: DAI) and Standard & Poor’s 500 Index (NYSE: SPY) has certainly been strong in recent market action.

Interviewed by Alexander Eule in the Barron’s piece, “Power to the People,” Edel bases this optimistic prediction on “the underestimated power of technology.”  The main factor is “Singularity” which “holds that the constant doubling of technology power will lead to an explosion in artificial intelligence and technology innovation.”   In a recent article on this site it was detailed how software companies ranging in size from Amazon (NASDAQ: AMZN) to Quadrant 4 (NASDAQ: QFOR) are continuing to expand into new areas.

Edelman’s firm advocated a portfolio mix of two-thirds stock and one-third bonds.  The holding period is definitely long-term, which is the basis for the investing strategy.   Edelman Financial Services has more than 20,000 clients with close to $10 billion in assets.

He is certainly not the only bullish financial adviser stating the stock market has much higher to go in this current rally.  In a previous article on this site, Kenneth Fisher, writing in Forbes, projected that,”We are halfway through the bull market with four years to go.”

There are certainly many factors buttressing these assessments.  The Cold War is long over and all the world’s economies are market based or moving that way.  Both the United States and China are still growing.  Global central bankers are working to move beyond The Great Recession, although that is not early over yet.  Technology continues to transform individual lives.  Due to economic advances, billions more are moving into the middle class around the world.



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