MSGS - Billionaire Mario Gabelli sees Dow at 80000 by 2031

Billionaire investor Mario Gabelli said Thursday that he expects the Dow Jones Industrial Average to reach 80,000 by the end of the next ten years, suggesting a compound annual growth rate of 7.2%. As of midday trading on Thursday, the Dow sat at just under 35,500. Gabelli's target would see the index rise about 125% over the decade. Speaking to CNBC, the founder and CEO of Gabelli Asset Management Company Investors argued that this growth will come despite a likely contraction of stock multiples in the face of tighter monetary policy in the next 5-10 years. "I'm in the camp of those that expect inflation to continue and as a result of that, rates go up," he said. "Over the next 5-10 years, you'll just have a fairly significant headwind on the multiple," he added. However, Gabelli argued that even with inflation-related increases in costs, many companies will be able

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Billionaire Mario Gabelli sees Dow at 80,000 by 2031