Next Target: Dow 8000
Last year, technical analyst Ralph Acampora of Prudential Securities was the first major analyst to broach the idea of a 7000 point Dow Jones industrial average.
"Ralph and Prudential, are now looking ahead to an 8000 point Dow some time later this year," says Hildegard Zagorski, another analyst at Prudential in New York.
"The underlying economic fundamentals continue to look very good, and are driving this market," says Ms. Zagorski. Technology shares have rebounded; interest rates remain steady, with the Federal Reserve not yet inclined to boost rates; unemployment is not a problem. "This is a good market environment," she says.
Prudential has reason to feel rather proud, she notes, after its call of Dow 7000. But will it be right a second time?