Dow Jones 14,000?

Posted by: Barrons

Updated:
04.28.07
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From Barrons 4/30/07

"As for Dow 14,000, it's hurry up and wait. Only 4% of the managers responding to our latest survey expect to see that big, round number this year, although 38% predict the industrials will overtake 14,000 by June. Then again, the jaunt from 13,000 to 14,000 would translate into a gain of only 7.7%. What's happened since October to inject so much caution into the crowd's collective view? Foremost was a sharp selloff beginning in late February that took the Dow down about 700 points, or 6%, amid a wave of earnings disappointments. Our sunniest respondent by far, Marker expects the Dow to rise almost 18% this year, to 14,700, and to close in on 15,450 by the middle of 2008. Why such swagger? The speed with which the market righted itself after February's fall, for one thing. Its quick recovery "indicated the market's underlying strength, and the liquidity ready to pour in" when stocks are on sale, he says.