In a previous article named, “FxWirePro: Dow maybe heading towards a test of 20000 area”, dated 22nd July this year, available at http://www.econotimes.com/ , we suggested Dow Jones Industrial Average (DJIA), which was then trading at 18450 area would go for a test of 20000. We cited the prevailing bullish sentiment due to variety of factors as the reason behind the push. The election of Republican candidate Donald Trump and his laid out proposals have acted as major bullish factors for the Dow, even though some of the then bullish factors such as a slower rate hike from the Fed got revised.
So far, the equity markets have been rising on sentiment, and likely to rise further as Donald Trump assumes office in January. Once the proposals, such as infrastructure spending and tax reforms gets kick started, the Dow is likely to enjoy renewed bullish sentiment.
With a positive outlook on the US stocks, we expect the Dow Jones to reach beyond 20000 and reach as high as 22500 over the next year or so.
