In spite of bad fundamentals one single factor can push Dow to 25,000 in the next seven years – here is why?
Joe Weinman
Mar. 10, 2007

The deflation is affecting the economy. The fundamentals are bearish like never before. The underemployment, stagflation, and deflation all are just trouble makers in the equities markets. However, one single thing can let all these troubled hot spots get overlooked as Dow heads towards 25,000 by 2014 – that is a 100% rise from where it is today.

It can be a nightmare for those who follow the fundamentals in the market place. The stocks markets earning can go down but stocks may rise by shear increase in price earnings ratio.

China's finance minister confirmed the outlines of a government plan to overhaul management of its $1.07 trillion in foreign-exchange reserves. It is the first signal that China may be eying the US and worldwide stock markets. That can be just bullish for stocks.

Currently, China's stash of official reserves is managed by a branch of the central bank, and is kept largely in safe, but low-return, investments such as U.S. government bonds. If that changes to participation in world equities markets, stock markets can rally to level never imagined before.

Fall in gold and oil prices with the collapse in equities worldwide will confirm deflation is the root cause of all troubles
Peter Oberois
The debate is on. Some say it is inflation that is the root cause of all troubles. Some say stagflation. But how can we know it is really the deflation?
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In spite of bad fundamentals one single factor can push Dow to 25,000 in the next seven years – here is why?
Joe Weinman
The deflation is affecting the economy. The fundamentals are bearish like never before. The underemployment, stagflation and deflation all are just trouble makers in the equities markets.
READ MORE>>

Treasury Notes and Bonds showing signs of trouble – massive budget deficit can be the catalyst for the deflation causing factors
Marla Guthrie
The slight fall in unemployment rates created devastation in the Treasury Notes and Bonds in spite low job growth and other signs that the economy is headed for a deep recession.
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Massive white-collar unemployment from mortgage and financial services companies will bring collapse of economy and stock market
Fred Day
The effect of real estate bubble burst is far deeper than you can imagine. Most economists are concerned about the effect on the economy from the loss of construction jobs.
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The intra day market reversals have reached highest level since 1987 August – the failure of bull rallies can be catastrophic
Sam Adelton
Intra day trading is not easy. But it does provide the smart money some clues to the market internals. Before any major crash in the market or massive sell offs, the intra day bull market rallies start failing.
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Poor Job growth, lagging wages, declining unemployment rate – what does that mean for stocks, bonds, gold, and currencies?
Peter Oberois
How can a meager 97,000 more jobs in nonfarm sector create an unemployment rate of 4.5%. How could it drop from 4.7% to 4.5%?
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