Is the Dow Jones Industrial Average ready for a large move upward? I believe it is. Look at the below graph:
The upward sloped line is an exponential trendline based on 11% average return which is not too outlandish for the Dow Jones. However, the sad blue flat line on the bottom represents the actual return.
Yes this is simplistic – but I believe a reversion to the mean is coming soon with a large and sustained move upward. We’ll have to make up some ground to get back to where we “should” be on the Dow.