The Dow Jones Industrial Average (DJIA) is one of the oldest and most widely followed stock market indices in the world. The DJIA took a sharp downturn due to the COVID-19 pandemic, falling below 23,000 in March 2020. Since then, the DJIA has recovered significantly, and is currently hovering around the 32,000 mark. Given the significant swings the market has experienced over the past few years, and the high inflationary environment we are in, where do investors think the DJIA will be at the end of 2023?
When Spectrem Group recently asked wealthy investors where they felt the DJIA would be at the end of 2023 over a third responded that they simply didn’t know. This reflects an overall uncertainty behind investor attitudes towards the stock market. Investors increasingly don’t know what to think so they won’t even venture an estimate as to what the stock market will do for the remainder of 2023. Twelve percent indicate that they feel the index will end between 32,000-33,999, which is where it currently sits as of the writing of this article in late February 2023.
A third of investors feel more optimistic regarding where the stock market movements will end the year, believing that the index will end 2023 at 34,000 or higher. Only 20 percent of wealthy investors feel that the DJIA will end the year below 32,000. This overall shows that investors are slightly more optimistic about the direction they feel the markets are headed. Another sign of optimism is investor attitudes regarding their financial future.
When asked what their level of optimism is regarding their financial future, 64 percent of investors indicate that they are at least somewhat optimistic. Only 14 percent of investors are pessimistic about their financial future. Twenty-two percent of investors are neither optimistic nor pessimistic, which shows a similar uncertainty seen among those investors who indicate that they don’t know where the DJIA will end 2023.
Given that no one has a crystal ball to perfectly pinpoint where the stock market will end the year, it is prudent to invest with the care and caution that is suitable for each investor’s specific situation. Working with a financial professional can help investors make sense of the turbulent markets and ensure their investment strategy matches their risk tolerance and investment objectives.
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