Many use this method of price estimation for the long and short term price targets.
Previous post: Australia to enter a very sad period
The site would bet that that Charles Nenner use a similar formula to make the Dow 5000 call. As you can see statistically it is a very accurate formula.
A reminder of the AORD as at 2013.
"At long as a stock is acting right, and the market is right, do not be in a hurry to take profits." ~ Jesse Livermore Trading Rule
"The stock market is filled with individuals who know the price of everything, but the value of nothing." ~ Philip Fisher
"It is better to have few stocks and to watch them carefully." ~ Bernard Burach
"To me, the 'tape' is the final arbiter of any investment decision. I have a cardinal rule: Never fight the tape!" ~ Martin Zweig
"By failing to prepare, you are preparing to fail." ~ Benjamin Franklin