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The Dow broke the 14000 mark today for the first time since 2007. The all-time high was I think 14,164, so we are very close to seeing new highs for the first time since the economy crashed.
Greg Bernhardt said:Very good sign, but I have a hard time trusting anything. What happens when interest rates begin to rise and people start taking money out of the market? Will it have stabilized by then?
Ivan Seeking said:As I understand this, when the market crashed, a great deal of wealth turned to vapor. So to me the most important thing is that a tremendous amount of new wealth has been created. Eventually this wealth must manifest throughout the rest of the economy.
Greg Bernhardt said:I wonder if the people who are making the new wealth were the people who lost it. In some cases maybe, in most I bet not, and that is the problem.
russ_watters said:[response to Greg] Nah, I bet most were the same people and I'd go further to re-characterize the issue: I bet most of the excessive gains and losses were never realized anyway.
Ivan Seeking said:The Dow broke the 14000 mark today for the first time since 2007.
jtbell said:Of course, 14000 isn't worth as much as it was in 2007. Applying the Consumer Price Index for December 2007 and December 2012, I get 14000 * 229.594 / 207.342 = 15502. So we still have a way to go before we really catch up.
I have to admit last month's gain does look good in my retirement accumulation, on top of the big gain we had last year.
Yes, and at which point the real return will be flat on money invested in 2007 at the peak - flat over five years, so far.jtbell said:Of course, 14000 isn't worth as much as it was in 2007. Applying the Consumer Price Index for December 2007 and December 2012, I get 14000 * 229.594 / 207.342 = 15502. So we still have a way to go before we really catch up. ...
mheslep said:Yes, and at which point the real return will be flat on money invested in 2007 at the peak - flat over five years, so far.
Jimmy Snyder said:This is a bad sign. Historically, stocks have tended to go down after reaching a high.
jbunniii said:Looks like it broke 14000 again today, in the other direction. Now we can apply Rolle's theorem.
http://www.marketwatch.com/story/is-this-market-headed-for-a-correction-2013-02-07The market’s recent strong run has brought out the buyers, but also the bears — with a growing number of high-profile investing pros suggesting the better-than-expected results and a return to record highs is leading lambs to slaughter.
Jimmy Snyder said:Jaffe has hit the nail on the head. Caution is advised for investors who are buying or selling while those on the sidelines should consider reallocating in order to generate extra transaction cost benefits. This is no time for optimistic hedging nor for pessimistic backing and filling. In other words, the market is likely to either rise, fall, or remain steady going forward and therefor a balanced approach of buying, selling, and holding is recommended.
Funny, Clint Eastwood told me the same thing.lisab said:Jimmy, you'd be amazed at how frequently you make my day .
Jimmy Snyder said:Jaffe has hit the nail on the head. Caution is advised for investors who are buying or selling while those on the sidelines should consider reallocating in order to generate extra transaction cost benefits. This is no time for optimistic hedging nor for pessimistic backing and filling. In other words, the market is likely to either rise, fall, or remain steady going forward and therefor a balanced approach of buying, selling, and holding is recommended.
Ivan Seeking said:The [Dow's] all-time high was I think 14,164, so we are very close to seeing new highs for the first time since the economy crashed.
The Dow breaking 14000 refers to the Dow Jones Industrial Average (DJIA) reaching a value of 14,000 points. The DJIA is a stock market index that tracks the performance of 30 large, publicly owned companies in the United States. A higher value for the DJIA indicates that these companies are performing well and the overall stock market is strong.
The Dow breaking 14000 is significant because it signifies a new high for the DJIA since 2007. This means that the stock market has recovered from the 2008 financial crisis and is now stronger than it has been in over a decade. It also shows that investors have confidence in the economy and are willing to invest in stocks.
The last time the Dow broke 14000 was in October 2007, before the 2008 financial crisis. It then experienced a sharp decline and did not reach this level again until 2021.
The Dow breaking 14000 is a result of the performance of all 30 companies in the index. Some of the top contributors at the time of the milestone included Apple, Microsoft, and Visa.
The Dow breaking 14000 is a positive sign for the economy as it reflects strong performance and growth in the stock market. This can indicate overall economic growth and stability, and can also potentially lead to increased consumer confidence and spending. However, it is important to note that the stock market is just one aspect of the economy and does not necessarily reflect the financial well-being of all individuals and businesses.