Dow 30,000.
Barron's predicted this back in 2017, assuming the Trump tax cuts would boost Corporate Earnings and all went well with China Trade and nothing bad happened – Barron's saw the possibility of the Dow hitting 30,000 by 2025. While that's all very nice, I will point out that it's only 2020 yet here we are already – the very definition of getting WAY ahead of ourselves.
What's even more interesting is that we're doing it with 10% unemployment and a virus ravaging our economy and GDP down about 10% for the year – this is some truly insane market action – we're not taking reality into account at all….
Historically, the average Price/Earnings Ratio for the Dow Jones is about 16 times earnings. Currently the P/E Ratio for the Dow Components is 39.45 and I'm being generous because BA, CVX, DIS and DOW are losing money and I'm only counting their P/Es as 100 and not infinity.
Company Name Symbol Last Price P/E Ratio
Apple Inc. AAPL $ 116 35.37
Amgen Inc. AMGN $ 242 19.49
American Express Company AXP $ 116 28.55
The Boeing Company BA $ 189 100
Caterpillar Inc. CAT $ 172 28.56
salesforce.com, inc. CRM $ 248 95.58
Cisco Systems, Inc.
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