Longest Bull Run in History could Take us to Dow 30,000

01:28 09/03/2018

The bull market is now more than 3,450 days old.

And there are no clear signs of it ending.

Since January 2016, the Dow Jones Industrials rallied from 15,450 to 26,200.

The NASDAQ soared from 4,350 to an all-time high of 8,109. The S&P 500 jumped from 1,850 to 2,901. The Russell 2000 rocketed from 943 to 1,740.

And we wouldn’t be shocked to see the Dow hit 30,000 this year.

Thanks in part to the tax cut, which led to strong consumer spending, low unemployment, and 4.1% U.S. GDP growth last quarter.

The Federal Reserve Deserves Credit, too

At a Jackson Hole, Wyoming presentation, Fed Chair Jerome Powell pointed out how strong the economy is. He added that he doesn’t see much risk of economic “overheating,” as far as inflation is concerned, and he continues to support the Fed’s gradual rate hike policy.

“The economy is strong,” Powell said. “Inflation is near our 2 percent objective, and most people, who want a job, are finding one. My colleagues and I are carefully monitoring incoming data, and we are setting policy to do what monetary policy can do to support continued growth, a strong labor market, and inflation near 2 percent.”

The chairman's dovish tone about the economy and his message that the Fed plans to stick with a gradual pace of rate hikes helped spark last week’s rally. "With solid household and business confidence, healthy levels of job creation, rising incomes, and fiscal stimulus arriving, there is good reason to expect that this strong performance will continue," he said.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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