Jim Cramer was on the Chris Matthews Show this week and mentioned that he expects the Dow to rise an additional 10% within the next 6 months.
That would put the Dow at almost 14,500 by year’s end, which seems like a pipe dream to those of us who’ve been watching the US economy flounder in comparison to overseas investments.
Or is it?
Cramer’s assertation that it is the BRICs that are leading the world is right on target, and it’s important to point out that the Dow 30 is heavily weighted with companies that do a lot of business overseas. By some estimates, 40% of revenues from companies in the Dow come from Europe, Asia and Emerging Markets.
For that reason alone, it’s reasonable to assume that the Dow will break away from the S&P 500 in performance this year, and in the years to come. Big hitters like Alcoa and Boeing can expect big numbers from developing economies that will need their products.