It appears the bears are awakening from their deep slumber to turn the lights out on a bull market that’s been going for nearly a decade now. Leave it to a legendary rocker to throw the lights back on and, of course, crank the music really loud. Beyond 30,000, that’s where the Dow Jones Industrial Average (DJIA) is headed, according to Gene Simmons, known by many rock n’ roll fans as the KISS Demon. Simmons recently sat down with Barron’s, and among other things, gave them his divinations about the market, “We are now at 24,700, something like that, and there is no question in my mind we are going to go past 30,000.”
As of the close of trading on Tuesday, the Dow was sitting around 24,360, down 1.5% on the year. Since 1985, the Dow has gone through good times and bad, but has risen overall by nearly 1,800%. If Simmons, bassist and co-leader singer of the band KISS, is right, the Dow could rise another 23%. (To read more, see: How Now, Dow? What Moves The DJIA?)
The KISS Demon’s Pedigree
Being inducted into the Rock and Roll Hall of Fame just over four years ago, it’s no doubt that the band members of KISS were given the gift of rock n’ roll. However, as rockers are known for rock n’ rolling all night and partying every day, some would question whether that kind of life style really gives them the capacity for making solid market forecasts. Yet, Simmons, despite all the on stage theatrics of a rock n’ roll star, says he’s never been drunk in his life and the only drugs he does are the ones the doctor gives him.
He’s also no slouch when it comes to the world of business and finance. Estimated at a net worth of $300 million as of April 2017, Simmons has not only had a long and successful music career, but has also been a successful entrepreneur engaged in a number of different ventures, including Simmons Records, Erebus Pictures, Cool Springs financial services and the Rock & Brews restaurant chain. He also ascribes to the “Warren Buffet school” of investing; that is, doing your homework and sticking to what you know. (To read more, see: Warren Buffet: How He Does It.)
Why Gene Simmons wants you to go to the library
His 30,000 Entourage
He’s also not the only one who is calling for a 30,000 Dow. For what’s worth, President Trump was calling for a 30,000 Dow earlier this year before the markets took their initial dive. Given a stronger economy and corporate tax cuts that will boost already strong earnings expectations, the Dow should have no trouble reaching 30,000 by the end of the year, according to Stephen Guilfoyle at The Street. But then that forecast was from last December, also before the markets took the plunge.
Longer term, one forecaster arrives at a 50,000 Dow by 2030 using a compound annual growth rate of 7% and starting from a level of 1,000 in 1972. By his calculations, the Dow is already above the 22,472 level forecasted for the end of this year.
As for where the KISS Demon has his money these days, he claims he owns $10 million worth of stock in Invictus MD Strategies, a regulated Canadian cannabis company for both medical and recreational use. Despite never having smoked the drug, Simmons claims to have changed his previously “judgmental, and dismissive, and arrogant” views about cannabis. After doing his research, in Buffet-like fashion, Simmons was amazed at the medicinal properties of the drug.