Could the DOW Really Double From Here?

Hedgefund manager Erik Townsend hosts a podcast called MacroVoices. This week he had Martin Armstrong on. I like to listen to podcasts at Overcast.fm because you can adjust the speed (save time).

Martin Armstrong makes his case for why the DOW could double from here, despite being already “over valued” or at elevated levels. Essentially, government debt sucks, the DOW is the best of the worst and money can/will come from all over the world.

I believe that stocks are currently overvalued and are way overdue for a crash. US GDP numbers for Q1 2017 came out at 0.7% , which means fundamentals aren’t supporting the asset prices. This makes it really, really hard to buy. But maybe another reason to buy. Usually the hardest trade is the right one.

I’m going to wait and see what happens with the government shutdown. The decision was put off a week. Also, there is the Sell in May motto. If things hold through mid-May, perhaps I’ll dip my toe into this fear trade.