Recently Warren Buffet made another of his seemingly aggressive statements about the market: In a hundred years the Dow will top 1.000.000. This is actually a no-brainer. 1.000.000. is an under call. The way to look at this is to calculate the projected CAGR (Compond Annual Growth Rate). Buffet’s statement predicts a CAGR of 3.76%. A year ago when I published Sacred Chickens, the Holy Grail, and Dow Theory I calculated the CAGR of the Dow for 113 years at 7.87%. So we can see that Buffet’s call is actually very conservative.
This is a fortuitous time to examine the question, since all the major indices keep lurching to new highs and we have just seen new buy and add-on signals. It is quite possible that we are seeing here the launch of a major new wave. Donald Trump permitting.