20%-30% Correction — Then Rally to Dow 15,000: Strategist
The Dow Jones Industrial Average is currently trading near 10,700, but Jeff Hirsch, editor at Stock Traders Almanac told investors that the index could reach 15,000 by 2011. He shared his insights.
“It’s based upon the average move from the mid-term low to the pre-[Senate] election high of about 50 percent,” Hirsch told CNBC.
He expects there will be a pullback at some point in the Dow of 20 to 30 percent, which would create a buying opportunity before a 50 percent rally.
“Some years have been low and some years have been higher—it’s an extrapolation from: if the low in 2010 is 10,000 then a 50 percent move is 15,000,” he said. “This is based on historical market action in the four-year cycle.”
In addition, Hirsch expects 400 new ETFs to be launched in 2010.
“We believe ETFs will be a big market driver,” he said.
- Watch Hirsch's Previous Appearance on CNBC (Aug. 26, 2009)
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No immediate information was available for Hirsch or his firm.