The Dow Jones Industrial Average could soar to 14,000, only to tumble again, says Phil Town, investor and author.
The market is currently trading at about 10,900.
He predicts that the market will follow another cycle of booms and “another huge drop.”
The market will experience “spurts of good news” and also the opposite, he told Yahoo Finance Tech Ticker.
Town, the author of "Payback Time," advises investors to shy away from predicting the market in the short term and said it is “not about guessing the market right.”
He advises investors to instead follow a strategy of buying stocks of individual companies.
"If you want to be a great investor and really start taking control of your finances, I think you have to start looking for individual companies,” said Town. “We’re looking at great businesses that we want to get real comfortable with,” he said.
His current picks are education stocks. He said investors could benefit from the high unemployment rate.
Town is a fan of Devry, Apollo Group and ITT Educational Services, although he does not own shares of those companies.
Some experts said a fallback in the market would not be unusual, the Associated Press reported.
“The market is extremely vulnerable to a pullback," said Christian Bendixen, director of technical research at Bay Crest Partners in New York.
Investors could be overreacting to any bad news in the market, some traders said.
“Given the ... substantial rise of the last few weeks, investors may be trigger-happy to lock in gains at any sign of selling," said Michael Sheldon, chief market strategist at RDM Financial Group.
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