Dow Could Reach 100,000 in 20 Years

By: CNBC.com

 Volatility may haunt global stock markets for another few years, but inevitably, equities are primed for a massive bull run, if historical performance is used as a guide, says Matthew Kidman, author of Bulls, Bears & A Croupier.

Both the U.S. and Australian stock markets, which Kidman says are currently in bear market territory having lost about 20 percent in the past five years, have the most potential for gains. He notes that the Dow Jones Industrial index [.DJI  11973.71    418.08  (+3.62%)   ] gained around 10,000 points from year 1982 to 2000, and believes the feat could be repeated, with the blue-chip index reaching 100,000 in 20 years.

"If you look back at history, we go through bear and bull phases. And when you go into a bull phase, you can put on a thousand percent over ten to fifteen years. So I'm being quite conservative on what could happen," Kidman said.

It's a similar case for the Australian market, Kidman pointed out. "If you look back at 1974 when the Australian market hit a low, the All Ordinaries Index was at 220. By the time it hit its peak in 1987, 13 years later, it was at 2,400. In 13 years, it did slightly more than a thousand percent," he said.
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