Wednesday, June 3, 2009

Sensex & Dow Jones: What will be the Next Level?

What could be the next possible level of Sensex & Dow Jones?

Ok let me give you a Hint. It is likely that US Economy may slip into a Depression from current Recession by the end of this year or in 2010. So Now answer the above question. What will be the next level of Sensex & Dow Jones?

Sensex is trading at the level of around 14,000 right now when I am writing this article & Dow Jones is trading at the level of around 8,000-10,000 level right now.

According to me, the next level of Sensex & Dow Jones could be 50,000, 60,000, 80,000 or even 1,00,000.

Shocked by this answer? Did not expect this kind of answer right? You must have thought that the US economy is slipping into a Depression than how can Sensex & Dow Jones hit such a high level? If the economy is in recession and slipping into a Depression than the stock exchanges should be crashed right?…….

Well, but this time the scenario is different. US Government is printing money in the true sense this time and thus according to Economists & Intelligent Investors of the world, there will be hyperinflation by next year because of this over supply of the truly printed money which will reduce the value of money and which will be the trigger factor for stock exchanges of the world to go high at this much of level.

In March 2009, Federal Government of USA announced that, it will buy Treasury Securities worth of  US $ 1.45 Trillion from Federal Reserve Bank of USA. In normal economy, when Federal Reserve issues treasury securities, the countries like China, Japan, Russia, India & private investors around the world buy it. But this time US Federal government has bought all of these treasury securities. It means that this time US Government has printed money in the true sense out of thin air only (Out of Nothing).

And this over supply of money will lead to hyperinflation, which could drive Sensex & Dow Jones to such a high un realistic levels.

According to Economists, If US Government print enough money and the value of US Dollar collapses, then S&P could go to 50,000, Dow Jones can go to 1,00,000.

There is a strong possibility that the stocks could go through unheard levels, but would be in worthless currency.

So Get ready to See the un realistically high levels of Sensex & Dow Jones in the near Future…!!!

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