A Stock Analyst predicted that the Stock Market will hit 40,000 but only after a major ‘large panic event’.

Market Watch:

Back in January 2016, when the Dow Jones Industrial Average DJIA, -0.51%  was trading around the 16,000 level, Yves Lamoureux, president of macroeconomic research firm Lamoureux & Co., said the blue-chip index would topple 25,000 within three or four years. It didn’t take that long.

Now, with the Dow clinging to a 500-point cushion above that milestone, Lamoureux is standing firmly behind another bullish call: Dow 40,000.

Oh, but there’s a catch.

“We see a large panic event taking shape now that continues into next year — the melt-up we forecasted is done,” he told MarketWatch. “Investors should be out of stocks for most of 2019.”

Lamoureux, who moved mostly to cash in the summer, predicts that the stock market could lose a third of its value in the coming year, prompting a “hyperinflation of financial assets at an impressive rate” that ultimately carries the Dow all the way up to 40,000 in the years that follow.

This is a major prediction and one that President Trump should take notice of. Trump has put the economy in great shape but the Market still has a mind of its own.

After the Fed announced it was raising interest rates yesterday the Market plummeted 800 points.

Corrections in the Stock Market are fine, which is a decline of 10% or more from a high but a crash would sink his Presidency before Midterms.

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