Billionaire Ron Baron Forecasts Dow 650,000 Within 50 Years

Billionaire Ron Baron was back on CNBC, making the case to investors that they need to buy stocks and ignore all risks and dream big because the market will be up massively in 50-years. 

The “buy-and-hold” billionaire said “fear is evident” in the stock market, and suggested to viewers that the Dow Jones Industrial Average could hit 650,000 by 2069/70. 

Source: Bloomberg

Even on a log scale this acceleration looks a bit much.

Source: Bloomberg

As to the “fear” Baron describes in the Dow — we aren’t sure if he is accurately describing the current outlook because the index is about 1% from ATHs (mainly on trade optimism, hopes of central bank easing, and the expectation that a 2016 style rebound in the global economy is imminent in 2020). 

Baron refers to the current stock market environment as very similar to 1969, except there’s one thing he left out — stocks plunged that year – and so far this year — stocks are at record highs. 

But anyways he said: “Everybody is worried about something. If you invested in 1969, amidst turmoil in 1969, you would have made 25 times your money.”

“I think the 6.5% annual growth [in the market] is going to continue, on average, for the next 50 years, at least,” he added, making the point that investors should forget the day-to-day market gyrations and stay focused on the long term.

“People forget about compounding” money over time, he said.

Baron added, “I’m thinking the next 50 years is going to be similar to the last 50 years,” which he is suggesting implied that the Federal Reserve stands ready to pump trillions of dollars into Wall Street to hyperinflate the stock market to levels in line with his forecast. 

The timing of Baron’s stock market forecast is undoubtedly suspicious. Stocks remain at ATHs, while he’s suggesting the Dow will hyperinflate over the coming decades.

Now where have seen that before?

Source: Bloomberg

Or maybe it doesn’t, and Baron is using this time to unload stocks onto gullible millennials who will be bagholders for generations to come.