| Ho Chu Tiem |
11-18-2020 15:13 |
Trump : If Biden wins, stock market will crash
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Dow Jones could hit the 40,000-point level next year, analyst says
The Dow Jones closed at 29,783 points on Tuesday.
It has risen by over 4% so far this year despite the coronavirus crisis.
A Baird research note said it was keeping an eye on “B.E.A.C.H” stocks — bookings, entertainment, airlines, casinos/cruise lines, and hotels.
The Dow Jones Industrial Average stock index has the potential to reach the 40,000-point mark in 2021, according to Patrick Spencer, the vice chair of equities at investment bank Baird.
He explained on CNBC’s “Street Signs Europe” Wednesday that the index contained more value than growth stocks, and expects the former to outperform while the latter stabilizes.
“So there’s still a lot of despondency, a lot of reticence with regard to going into the market and they are still pretty unloved generally, equities,” Spencer said Wednesday, revealing that discussions at his firm had touched on a possible surprise surge for the Dow. “We talk about maybe 40,000 level on the Dow there next year because of the make-up of that index which is more value than growth,” he added, without giving a detailed target on when that might happen.
The Dow Jones closed at 29,783 points on Tuesday and has risen by over 4% so far this year despite the coronavirus crisis. Stocks have seen a strong rally in the last few weeks on vaccine hopes, and Spencer’s call would represent a climb of nearly 35% from current levels.
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