{"id":84473,"date":"2017-09-24T08:07:34","date_gmt":"2017-09-24T12:07:34","guid":{"rendered":"https:\/\/stateofthenation2012.com\/?p=84473"},"modified":"2017-09-24T08:07:34","modified_gmt":"2017-09-24T12:07:34","slug":"now-you-know-the-stock-market-is-going-to-crash-soon","status":"publish","type":"post","link":"https:\/\/stateofthenation2012.com\/?p=84473","title":{"rendered":"Now you know the stock market is going to crash soon!"},"content":{"rendered":"

Warren Buffett Predicts Dow 1,000,000; But There’s A Catch…<\/h2>\n

ZeroHedge.com<\/p>\n

The Wall Street Journal won the award for the greatest “Shock And Awe” financial headline of the day when it published a story earlier entitled “Warren Buffett Says the Dow Is Going Over One Million<\/a>.”\u00a0 The ‘Oracle of Omaha’ apparently made the ‘bold’ prediction at the 100-year anniversary celebration of Forbes magazine in which he also said that\u00a0“being short America will continue to be a loser\u2019s game.”<\/strong>\u00a0 Here are the highlights from WSJ:<\/p>\n

\n
You heard it from Warren Buffett first: the Dow Jones Industrial Average is headed above one million.<\/strong><\/div>\n

The blue-chip stock benchmark is likely to be above that milestone in a hundred years\u2019 time, the Berkshire Hathaway Inc. chief executive and chairman said Tuesday night.<\/p>\n

\u201cThe Dow will be over a million<\/strong>\u00a0and that is not a ridiculous forecast at all if you do the math,\u201d he said.<\/p>\n

\u201cBeing short America has been a loser\u2019s game,\u201d\u00a0<\/strong>he said.\u00a0\u201cAnd it will continue to be a loser\u2019s game.\u201d<\/strong><\/p><\/blockquote>\n

\"Warren\"<\/p>\n

And while the title may make you want to drop everything you’re doing, throw all your cash in the DOW and retire early…a bit of simple math reveals that a more appropriate title for the Wall Street Journal’s “Shock And Awe” piece from early today might have been:\u00a0“Warren Buffet Predicts Dow Will Massively Underperform Historical Returns Over the Next Century.”<\/strong><\/p>\n

In reality,\u00a0‘Dow 1,000,000’ in 100 years would indicate an abysmal CAGR of just 3.9% pre-tax,<\/strong>\u00a0or closer to just 3% post-tax returns per year (assuming tax rates don’t trend toward 90% over the next 100 years).<\/p>\n

Taking a look back, the\u00a0Dow has returned 5.7% annually over the past 100 years and 9.3% annually since 1980\u00a0<\/strong>when the modern era of equity bubbles first started to really take off.<\/p>\n

<\/a><\/p>\n

Finally, just to put all this in context, if the Dow were to grow at the same annualized rate of 9.3% that it has grown at since 1980,\u00a0then a more reasonable 100-year price target for the Dow would be just over 140,000,000\u00a0<\/strong>instead of the 1,000,000 predicted by Buffett…<\/p>\n

___
\nhttp:\/\/www.zerohedge.com\/news\/2017-09-20\/warren-buffett-predicts-dow-1000000-theres-catch<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Warren Buffett Predicts Dow 1,000,000; But There’s A Catch…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-84473","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/84473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=84473"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/84473\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=84473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=84473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=84473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}