Dow 20,000?

Master or Slave? (Flash Question) (Photo credit: Christine ™)

Seth J. Masters, Chief Investment Officer of Bernstein Global Wealth Management says the odds of the Dow hitting 20,000 by the end of the decade are excellent: Over 10-year periods since 1900, stocks have outperformed  bonds 75 percent of the time, according to Bernstein’s calculations. But today, bond prices are relatively low — their yields, which move in the opposite direction, are extraordinarily low — and stock prices are relatively high. So the firm sees the chance of stocks beating bonds over the next 10 years at 88 percent.
Stocks have been cruel and it is hard to love them now. Still, Mr. Masters writes, “We think that 10 years from now, investors will wish they had stayed in stocks — or added to them.” ... Continue to read.

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