Tuesday, December 22, 2009

Sensex Prediction for 20 Years

Sensex Prediction for 20 Years

Sensex after 2 Years

Sensex after 5 Years

Sensex after 10 Years

Sensex after 20 Years

All of the above are the common queries of Investors. All the people want to know that at which level the Sensex will be after 5,10, 15 and 20 years from now. Right now when I am writing this article, the Sensex is trading around 17,000 level.

Now, if we consider the 20% annual return from the Indian stock market for the next 20 years than we will have following Sensex Values in the Future.

2009 – 17,000

2015 – 42,301

2020 – 1,52,059

2025 – 2,61,600

2030 – 6,51,000

Thus the above are the Sensex predictions for the next 20 years. Now, I know that many of you will think that these are the ridiculous predictions. The Sensex can not go beyond 1 Lakh level.

But well, the reality is that,

I am afraid that you will see the Sensex levels much higher than this in the coming future. Do You Know Why? Well, This is because The US Government has doubled it’s monetary base (Money in Circulation) twice (From 800 Billion to almost 2 Trillion) in just last 2 years only.

Do you know that what it means? Well, it means that now the US Dollar is the terribly flowing currency. And this Dollar is diverting towards the emerging markets. And this newly printed money can inflate the Sensex to the sky high levels. May be 100 times more than it’s Current Level…!!!!!

You may see the Sensex at 17,00,000 levels in the near future. I know that this will sound crazy to you. But this is true. Developing countries are fearing of Asset Bubbles. We will see Asset Bubbles in the Indian Stock market in the near future.

This is because the newly printed dollar is diluting the purchasing power of the existing dollars in the economy.

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