Dear Mr. Berko: Last February, you said the Dow Jones industrial average could pass 30,000 in 10 years. Considering the possibility of higher interest rates, dangerous international situations — Brexit, Catalonia, the Kurds, North Korea, global warming, the Middle East, Afghanistan, the economic failure of Puerto Rico, Venezuela, Brazil and Argentina — the huge costs of immigration in the U.S. and our huge national debt, why are you bullish? We are pessimistic because things are really terrible and unstable and President Donald Trump may cause World War III. There is so much that’s frightening. I fear for my children and grandchildren. How can you justify 30,000? My wife and I think you are as crazy as a loon.
— K.F., Kankakee, Ill.
Dear K.F.: You remind me of the cartoon character Joe Btfsplk, from “Li’l Abner” — a perennially gloomy troglodyte who walked among Dogpatchers with a black cloud hovering over his head. Joe, a certified jinx, brought misfortune to those around him. KF, you need to calm up! I recommend lorazepam during the day and a zaleplon at bedtime. Ask your doc for dosage amounts. And be mindful that while you pessimists complain about the wind, optimists learn to adjust their sails.
That said, you’re as right as sunshine, blue skies and daffodils. Those circumstances scare the bejabbers out of me because cumulatively, they amount to a huge hill of beans. However, a money manager I’ve known for 24 years is 30,000 positive. He knows seven important things:
1) The market is flooded with trillions of dollars from central bankers the world over. French, German, South American, British and Saudi investors — and even the Russians and Chinese — believe that our Dow is the place to be.
