Yesterday evening in Money Line, Joseph Mc Alinder, Chief Analist at Dean Witter Inter Capital and Charles Allmond, editor of the Growth Stock Outlook, discussed with Jan Hopkins about the future of the
American Stock Exchange.
They had a very different view on this.
Joseph was very bullish in the long run, and predicted a
Dow Jones level of 15000 within 7 years. But he also
predicted a correction in the second half of the year of
10 or 20 %, depending on the fact if the FED would raise
interest rates or not, in order to keep inflation under
control.
Charles on the other hand predicted a level of the Dow Jones
which was 40 to 60 % lower than the current level, within
2 years !
He cited overvaluation of the stock market (28 p/e for the
S&P, which is an all time high), disappointing earnings in
the future and impact of year 2000 problem + deflation
impact from Asia.
But they agreed on 1 topic : Gold shares should be relatively over-
weighted in your portfolio, because :
- Hedge against possible inflation in second half
- Sentiment in gold market has improved in recent months
- Lack of alternative investments
- Upcoming edition of the millenium goldcoin
- ECB will stop gold sales
I am quite confident in the future of gold shares now and
especially in good quality companies... |
