Low interest rate and The Fed’s policy will continue to boost the stock market. Dow may reach 30000 and SPX 3600 by 2016. Read the following article which seems to support my forecast. As always suggested, be careful with the short term volatility and gyration if you are a trader.
The Federal Reserve will continue to bolster the U.S. economy, Fed Chair Janet Yellen said on Monday, given the halting pace of the recovery and a still moribund job market.
In some ways, labor conditions are tougher now than in any other recession, Yellen said at a speech in Chicago. She added the Fed's "extraordinary commitment," in the form of massive bond-buying and ultra-low interest rates, is "still needed, and will be for some time."
Investors were closely monitoring Yellen's speech for comments on interest rates. During her first news conference following the Fed's Open Market Committee (FOMC) rate decision, traders were startled by the suggestion of an earlier-than-anticipated increase in rates. She hinted that a rate hike could come as soon as next year, but Monday's speech tempered that idea.
READ MORE HERE: