Dow Jones 100,000?
In 1987, the DJIA rose significantly early in the year, peaking at a 44% gain by August, then collapsed, falling 24% on Black Monday in October to end the day at 1916.
I still remember that very confusing day, as I was glued to the ‘machine.’
In the following months the stock market inched back, with DJIA ending the year at 1939, a small % gain for the full year.
From a DJIA near 2,000 in 1987 – to DJIA 20,000 in 2017 – did take 30 years.
But for many of today’s investors, the true time horizons for retirement savings and use of such savings it is even longer.
So, while DJIA at 20,000 seems scary – a buy-and-hold investor with long enough planning horizon may one day enjoy a DJIA at 100,000 – and maybe even a 10x gain from today’s levels for the youngest of us.
Not a fantasy for the optimists who believe that wealth creation around the world – with its collective human talents and emerging technologies – will reward those patient enough.