Hello. This is our weekly market alert video for the week ended March 12, 2021, and this week was a very interesting one from the standpoint that what many expected was going to happen did, and that is that the $1.9 trillion stimulus package, the COVID Bill was passed, and the checks, presumably, are on their out, and all the money that’s going to be put into the system is on its way, so what does that mean for us?
Well, we said that if that were to come about, we believed that that along with the vaccine and along with the pent-up demand and also all of the savings that people have because they have not been spending over the last year due to the pandemic, you put that all together, and we see a big spending spree happening her over the next few months. Those will drive profits, in our view, and profits drive stock prices, and therefore, we think we are going to see new all-time highs in the Dow for the next several months. In fact, our fearless forecast of Dow $35,000.00, we feel even more confident now than we did before about it, so from the standpoint of where things go from here, we find it difficult to see how the stock market would not go up given all of that money in the system. Now, having said that, it does not mean there are no risks. Obviously, we have the risk of a variant, a new strain of the virus that causes us to lapse back into the pandemic.
There’s also the possibility of higher taxes. There’s the possibility of inflation kicking in, interest rates spiking, so there are all kinds of reasons why people who are worried can worry, and certainly, those are valid points to consider and so while we are rosy and we do believe that we will see Dow $35,000.00 before year end, it does not mean that we could not be wrong, and that’s why we have our invest and protect strategy because if we are wrong and it does fall precipitously, we have a strategy in place that we are going to implement, and that way, we can hope to mitigate the effect and the detrimental effects of that sort of a thing, but for now, we think this is a buying opportunity still.
We said this a little while ago. It was better then, than now, given what the market has done, but be that as it may, we think it’s still a buying opportunity for people who have money that’s on the sidelines and so we think that things are going to go in the right direction, so for now, all is well, and we hope that you and yours are healthy, wealthy, and wise, and we hope that this video catches you in a good place, and we’ll talk soon.