Market Overview

Next Stop: Dow At 20,000?

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Next Stop: Dow At 20,000?

U.S. stock indices peaked mid-2015 and it took more than a full year to trade at record levels.

On Friday, the Dow Jones Industrial Average hit a new intra-day, all-time high of 18,557.43. This begs the question: When will the Dow trade at 20,000?

As noted by CNN Money's Paul LaMonica, the Dow trading at 20,000 isn't "that far-fetched of an expectation." After all, the index is just 1,500 points away from the milestone.

Related Link: The Fed's Mixed Feelings On Rate Hikes

For starters, investors are realizing they have to put their hard-earned money to good use and invest somewhere. European stocks are now perceived to be a "a huge risk" in the uncertain post-Brexit world, and concerns out of China and other emerging markets are still fresh in many investors' minds.

Meanwhile, oil prices started to retreat again and failed to support the $50 per barrel mark.

What About Bonds?

"Have fun doing a word that rhymes with 'kissing' your money away," he answered.

Forget about European and Japanese bonds that are trading at a yield below zero.

And that leaves essentially just U.S. stocks remaining — "for better or for worse." Investors "appreciate" the fact that the U.S. economy is "still much more stable" than other countries across the world.

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