Dow Jones Forecast

Dow Forecast DJIA 2022

In an economic phase where commodity prices are rocketing, many investors will turn to the blue chip industrials and huge companies of the Dow Jones 30 index. These big companies can profit well in an inflationary environment and provide sustainable wealth protection.

The strength of the Dow contrasts to that of the S&P and NASDAQ which is under tremendous pressure from high interest rates, withdrawal from communist countries, rising regulation, and trade embargoes. Apple, Google, and many other Dow listed companies are moving out of Russia. Given the trends, we could see them walking out of China too.

With limited supply and rising US and global demand, the Dow Jones stocks stand to be the best performers. However, as the chart below shows, they’ve been struggling the last few months, after almost doubling in the previous two years.

Of course, there are thousands of industrial stocks to pick, and many US manufacturing firms are soaring right now.  These US producer stocks are a few of the hottest stocks lighting up the tickers last week.

Dow Jones Forecast for 2022.
Dow Jones Forecast for 2022. Screenshot courtesy of Forecast.org

Best Manufacturer/Producer Stocks to Buy

Dow Jones stocks are generally stable, low risk, high value assets based on industry, and these are the darlings of many long term investors.  Review the top gainer Dow Stocks listed below.

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Best Stocks on the Dow Jones to Buy

Buy recommendations for the DOW: Investors.com believed Apple (AAPL), Boeing (BA), Disney (DIS), Goldman Sachs (GS) and Microsoft (MSFT) are the clear winning stocks.  They were also following Caterpillar (CAT).  Some say not to buy yet, but why wait for the prices to rise?  As summer returns, won’t Visa, Coca Cola, The Traveler’s Companies, American Express, Chevron and Nike make good sense?

Best performing dow jones stocks.
Best performing dow jones stocks. Screenshot courtesy of Barchart.

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Dow Jones IA Forecast to 2022

The DJIA has slumped given demand hasn’t roared, even for oil.  However, with Russia shut out of the global trade market, certain commodities such as oil, diamonds, wheat, palladium suddenly become more valuable. And commodities are the blue chips stock in trade at every part of that supply chain to consumers and businesses.

As Trading Economic’s forecast of the Dow shows, markets have a gloomy look to them. The S&P and NASDAQ have worsening outlooks given issues related to digital threats, regulation, and rising interest rates.

DJIA Forecast 2022 2023
DJIA Forecast. Screenshot courtesy of Trading Economics.

Most experts suggest the Dow Jones is at its peak right now but as we saw this week, a trend to value stocks is on.  The DOW 30 might be the group that excels through 2021 and 2022.   See the price outlook for Google, Apple, Amazon, and Facebook.

 
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Forecast for Next Month and Next 6 Months

The DOW Jones forecast for the next 3 months and next 6 months.   The DOW might be the best part of the stock market outlook overall for 2022.  Rising inflation and commodity prices will only feed the DOW listed companies even further.  They’re large companies that appeal to risk averse investors looking for equities that will retain their value over the next 5 year to 10 year forecast period.

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This month it is industrial stocks that are driving the markets, and APPL is one of those stocks. Apple is facing some stiff monopoly charges but it’s sales still float the stock.

Forecasts.org believes the Dow Jones will fall to about the 30500 within 6 months (October 2021).

Dow Jones Forecast. Next 6 Months
Dow Jones Forecast. Screenshot courtesy of Forecasts.org.

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What Factors Drive the DJIA Price?

As a weighted index of only 30 stocks, some might question whether the DJIA is a relevant index.

Dow Jones 30 Stocks include Apple, Pfizer, Walmart, Johnson & Johnson, Walt Disney, Nike among other huge corporations. Calling them industrials is a little misleading. Transportation and utilities stocks are not included in the DJIA and instead are in the Dow Jones Transportation Average (DJTA).

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Whereas the Dow Jones average is a measure of the biggest companies, the S&P 500 index is more about the stock prices of big, but healthy companies — those with high market cap above $8.2 billion and a public float of 50%, and which have had positive earnings for the last 4 quarters. The S&P has 500 stocks which makes it a more reliable reflection of the stock market.

The Russell Index in contrast is a measure of 2000 small cap stocks. It provides a look at performance of small business in America.

Predictions for Dow 30?

The 30 DJIA stocks by themselves offer a very skewed perspective of US stock markets and the economy as a whole.  See the 2021 stock market forecast for more perspective. In fact, many of these companies operate globally, and are therefore outside the real US economy, deeply affected by International trade deals.

As the global trade channels slowly awaken, it’s predictable that the large cap Dow 30 stocks are going to be investor favorites. Keep your eye on the best performing DOW stocks above. Perhaps slower growth than other hot tech stocks, consumer discrestionaries, and oil stocks, but likely far safer. The possibility of a stock market crash is slim for the next few years, but it is something to encourage you to hedge against.

Here are the Current 30 DJIA Stocks:

  1. 3M (NYSE:MMM)
  2. American Express (NYSE:AXP)
  3. Apple (NASDAQ:AAPL)
  4. Boeing (NYSE:BA)
  5. Caterpillar (NYSE:CAT)
  6. Chevron (NYSE:CVX)
  7. Cisco (NASDAQ:CSCO)
  8. Coca-Cola (NYSE:KO)
  9. The Walt Disney Company (NYSE:DIS)
  10. Dow DuPont (NYSE:DWDP)
  11. ExxonMobil (NYSE:XOM)
  12. General Electric (NYSE:GE)
  13. Goldman Sachs (NYSE:GS)
  14. The Home Depot (NYSE:HD)
  15. IBM (NYSE:IBM)
  16. Intel (NASDAQ:INTC)
  17. Johnson & Johnson (NYSE:JNJ)
  18. JPMorgan Chase (NYSE:JPM)
  19. McDonalds (NYSE:MCD)
  20. Merck (NYSE:MRK)
  21. Microsoft (NASDAQ:MSFT)
  22. Nike (NYSE:NKE)
  23. Pfizer (NYSE:PFE)
  24. Procter & Gamble (NYSE:PG)
  25. Travelers Companies (NYSE:TRV)
  26. United Technologies (NYSE:UTX)
  27. UnitedHealth (NYSE:UNH)
  28. Verizon (NYSE:VZ)
  29. Visa (NYSE:V)
  30. Wal-Mart (NYSE:WMT)

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Forecast.com Dow Jones Forecast to 2022

Longforecast.com’s adjusted outlook to 2022 sees the Dow reaching 40000 by 2024. The outlook in between is apparently not so positive.

dow jones forecast to 2024.
Dow Jones forecast to 2024. Screenshot courtesy of longforecast.com

Dow Jones volatility is mimics the same path the prices and forecasts for the S&P or the NASDAQ. DJIA are all about political power and the primacy of the monopolies. Within Free Trade, the monopolies could do as they pleased and name their price. But the end of Free Trade and the enforcement of China tariffs has ended it.

The threat of data privacy legislation and punishment from Europe, Asia, and North American governments casts a shadow over Dow companies. Anti-monopoly action by the DOJ too threatens these big companies revenue picture.

Best Dow Jones Stock Picks This Year

So far this year, the 5 best performing Dow stocks were Microsoft (up 35%), Cisco (up 32%), Visa (up 31%), American Express (up 31%), and Disney (up 29%) according to Yahoo Finance.

Investors Place has these as the Best Dow Jones Stock to buy:

  1. Apple (NASDAQ:AAPL)
  2. Microsoft (NASDAQ:MSFT)
  3. Nike (NYSE:NKE)
  4. Walmart (NYSE:WMT)
  5. Johnson & Johnson (NYSE:JNJ)
  6. Procter & Gamble (NYSE:PG)
  7. Goldman Sachs (NYSE:GS)

Politics Determines DJIA Predictions

With respect to US industrials on the Dow, the high US dollar, widening trade deficit and ballooning debt means the downward projection curve in the chart above makes sense. Moving production and fulfillment channels is not an easy thing to do. It’s unlikely Biden will have any greater luck trying to bring jobs back to the US.  A sliding US dollar is the only hope, and rising interest rates would wipe out any hope of currency help.

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Is it wise to invest in Dow Jones stocks? Likely not. It’s wiser to look at top performing US stocks on the S&P, or small caps on the Russell Index. The NASDAQ index as well holds stocks with better upside, given technology won’t fail even during a recession. Those companies using AI (artificial intelligence) should be of particular interest to you.

See more on the US stock more forecast as well as 3 or 6 month forecasts, and forecasts for tomorrow and next week, along with a look at the 5 year and 10 year long term picture.  Also take a good look at oil stocks, and best recovery stocks, along with the best penny stocks to buy.  High performing investments will be much harder to come by this year and you’ll be wise to hire a talented, high performing investment advisor to pick some winners.

See more insight on the Forecast for the Stock Market including Stock Market Predictions for Tomorrow , the 6 Month Forecast and 3 Month Forecast along with opinions of an impending Stock Market Crash.

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