We asked traders about the future of the Dow
Equity markets have enjoyed one of their strongest bull moves in history since bottoming out after the credit crisis low in March 2009 and are in a unique position this year, faced with multiple factors pushing and pulling it in opposite directions.
On one hand, real economic fundamentals are arguably better than at any time during this recovery; but on the other, equity market strength has been supported not by real fundamentals but by the extraordinary quantitative easing Fed policy, which is now over. So far the performance of the Dow in 2015 is an indication of this conflict. It will be interesting to see what side wins. So…
We asked traders, "The Dow Jones surpassed both the 17,000 mark and 18,000 mark for the first time in its history in 2014. What is more likely in 2015, the Dow hitting 20,000 or a major correction of 10-20%?"