The Dow surpassed 40,000 during midday trading for the very first time this Thursday. In a January 2020 interview with Andrew McCreath from BNN Bloomberg I explained that the Dow was heading up. The video was posted with the headline “DOW 40,000” and everyone dismissed my forecast as if it were my own personal opinion. I made similar statements in other interviews, such as my interview with Financial Sense five years ago in August 2019. I reiterated this forecast in a 2021 interview and continued to stick by the computer without relying on personal opinion.
I was asked how I knew then that we’d be where we were at now. My answer is the same — I just follow the models.
The Dow was 29240 on the day of the interview with BNN Bloomberg, and while many feared a correction was coming, I explained any dip was likely short-term in nature and that it would need to drop below 19000 to be truly considered a bear market – BUT that fell on deaf ears. Even with the notable COVID dip that soon followed this interview, the market bounced right back to new highs thereafter and the models stayed on track over the long term. We experienced one of the most HATED bull markets in history. Despite all of the turmoil over the years, The Dow consistently went up for over a decade but all the talking heads insisted it would go down.
So what’s next, as indicated by Socrates? The computer sees the Dow rising to 65,000 by 2032 when we are likely to see a change in not just the markets but governments worldwide. Governments throughout the world are still in trouble and the money remaining on the grid is fleeing into the US.
Watch the Dow for it will show you where the international money is flowing. The big players are not interested in small tech or companies that could go under. The S&P 500 is domestic-oriented, and fund managers and institutions tend to focus on this index. The NASDAQ typically reflects retail, often tech-heavy, and usually does not peak at the same time. Each index offers a completely different perspective. The Dow Jones Industrials is the big money. You will notice that this index leads the way. It is the first out of a key low because it is typically the foreign capital based on currency. You will also notice the Dow tends to top out first because the big money tends to pull out first also due to currency.
Capital is flowing like never before, and the smart money is on the move. Socrates users have access to our capital flow heat map that shows where money is moving in real time. The USD remains the last safe haven, and money is pouring into the US.
