Dow 15,000 very likely as coronavirus pandemic hits U.S. economy: strategist

[Yo_Mama_Been_Loggin]

Veteran markets strategist James McDonald, CEO of Hercules Investments, is staying with a call that he has had throughout the coronavirus pandemic fueled bear market, now going on two months.

That is, at least one more major course correction is ahead for equities as investors realize — once and for all — the U.S. economy is in a severe recession that won’t end anytime soon. It’s a call he has reiterated several times as a guest on Yahoo Finance’s The First Trade.

By McDonald’s math, he continues to see downside risk to the Dow Jones Industrial Average to 15,000 from its current perch just above 21,000. He thinks the economy could begin to show signs of life in the fourth quarter of this year — but until that starts to show up somewhere in the markets or economic data, he prefers putting on trades that profit from extreme volatility and downside.

Yahoo Finance highlights a call such as this because, well, McDonald has been dead right so far. Moreover, April has lived up to its billing in the early going as potentially lethal to stocks because of dreadful economic data nobody on Wall Street has ever seen before.

https://finance.yahoo.com/news/dow-15000-very-likely-as-coronavirus-pandemic-hits-us-economy-strategist-181857580.html

Just think of all the stocks you can buy at bargain rate then.

[ProfessorGAC]

1. That's The Lowest I've Seen

From a professional in the field.
I've seen 18k predictions, though.

[roamer65]

2. Maybe, but I doubt below it.

The Federal Reserve will step into the equity markets and buy stocks. Unlimited QE means they are buying EVERYTHING.

I think the real bottom is around 17.5k

[Loki Liesmith]

3. If it does hit 15k I will definitely be buying

[ooky]

5. Me too if I'm still alive. nt

[exboyfil]

4. I wonder what inflation will be like

At least for those things that have an inelastic demand curve (food, healthcare and insurance).

I went cash pretty early in all of this (with about 10% in TIPS). Should have purchased another 30% of TIPS when they were trading at 0.7% + inflation.

[safeinOhio]

6. Have some good value dividend stocks

that should come back. Fixed income retirement helps let me breath. No debt, just utilities and phone/internet monthly bills.