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