By CCN.com: The stock market has been booming, so don’t be surprised if the Dow soars to 30,000 within the next 12 months. That’s the bullish projection of several Wall Street veterans, including Skybridge Capital’s Troy Gayeski.
Gayeski is a partner and co-chief investment officer at New York investment firm Skybridge Capital. He says there’s more than a 25% chance that the Dow will clear 30,000 by the first quarter of 2020.
Gayeski says investors shouldn’t get discouraged by the constant barrage of negative headlines screaming about an impending stock market crash.
Gayeski told Yahoo Finance that these three factors are the catalysts for a near-term stock market boom:
Gayeski says the constant flood of doomsday scenarios related to the stalled US-China trade talks distracts from the reality of the robust U.S. economy.
“Even though some of the headlines in the short term are negative, you can’t get too bearish based on the recent trajectory of China-US trade talks,” he said. “You have to still focus on the strength of the domestic U.S. economy, which is rather robust.”
Other Wall Street veterans share Gayeski’s optimistic outlook. Jim Awad is the managing director of Clearstead Advisors and a 50-year investment professional. He believes the Dow Jones is poised for steady growth for the remainder of 2019 — barring a catastrophic event.
“I think we can make new highs. The window could be when corporations report second-quarter earnings in July and August and give third-quarter outlooks. If there is a little bit of promise on the trade front, we can have a good runway going into the end of the year and into 2020. We can make a new high in the markets somewhere between July 30 and the end of the year if there are no surprise events or wounds.”
That said, Troy Gayeski and other analysts also concede that there’s a chance the United States could fall into a recession by the third quarter of 2020.
Keep in mind that the US has been “overdue” for a recession for several years. However, the stock market shot up shortly after President Donald Trump took office, and has been remained consistently high.
Since then, there has been a steady stream of apocalyptic predictions that the Dow will tank and the U.S. will tumble into a recession, bringing the global economy down with it.
Nevertheless, many of Wall Street’s top investment bosses say rumors of an impending recession are greatly exaggerated. Take Krishna Memani, the chief investment officer at OppenheimerFunds, which has $213 billion in assets under management.
Memani does not foresee a recession for the next five years, so everyone should chill out. Memani admits that the US economy is slowing down a bit, but it will still increase north of 2%.
See our Dow Jones chart here.
Last modified: July 13, 2020 1:36 PM UTC