Is the 1983 album by Culture Club which spawned five top ten hits, including the monster hit Karma Chameleon.
Now the Wall Street Journal is saying if KARMA is anything to go by with, then the Dow Jones, should hit 20,000 points in NO TIME , but after that...
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Dow 19000 was nice, but Dow 20000 is the real milestone to watch and maybe even fret about.
The Dow Jones Industrial Average is roughly 5% away from reaching the next millennium marker. If history is a guide, it probably won’t be a straight shot getting there. But when the Dow hits 20000, holding that major milestone might prove to be problematic.
Since 1999, when the Dow first crossed above 10000, the blue-chip index has averaged a small decline one month after the initial crossing of each 1,000-point interval, according to Schaeffer’s Investment Research.
Big milestones have historically been tougher. The Dow first hit 100 in 1906 but it wasn’t until the mid-1920s before it convincingly traded higher than that level. And it permanently broke above it in 1942.
The same held true for Dow 1000. The blue-chip average first reached that mark intraday in 1966, but didn’t close above it until November 1972. And it wasn’t until 1982 that the Dow finally traded above 1000 for good, 16 years after initially breaching that mark.
Dow 10000 was similar. The average fell below that level during both the bursting of the dot-com bubble and the financial crisis. It wasn’t until 2010 that the Dow finally crossed back above and held 10000, 11 years after initially hitting it.
Behavioral finance suggests volatility around these big-round numbers isn’t necessarily coincidental. An academic paper by Shanghai-based finance professor Yu Yuan found market milestones, such as the Dow hitting a record, puts investors on alert, causing them to be more active than normal in their portfolios. The S&P 500, a broader index with much more money tied to it, appears less important psychologically.
One theme today similar to when the Dow first hit 100, 1000, 10000: rich valuations. Nobel Prize winning economist Rober Shiller’s metric, the cyclically adjusted price/earnings ratio, is considered a stable long-term valuation indicator. It currently is 27.28, well above its average of 16.7 dating back to 1881.
Perhaps not coincidentally, the Shiller PE ratio was higher than average in 1905, 1966 and 1999, each time the Dow first hit those milestones.
