DOW Jones hits all-time high


#1

The Dow is back. All the way back. At the opening bell Tuesday, the benchmark index sailed past its all-time closing high of 14,164.53 set Oct. 9, 2007.

In late morning trading, the Dow Jones industrial average was up 1%, more than 140 points to above 14,270. It has now erased the 54% loss it suffered in the brutal 2007-2009 bear market. Just two of the Dow’s 30 stocks: drug giant Merck and soft drink maker Coca-Cola were trading lower.

The broader Standard & Poor’s 500 stock index was up 1%, just shy of 1,540 and less than 25 points from its record closing high of 1,565.15 set on the same day as the Dow’s record in 2007.

Dow sails past all-time high


#2

Guess they’re not too worried about the sequester eh?


#3

On Monday, the Dow Jones industrial average enjoyed its second highest close ever and was just 37 points away from a new record — more than double its level during the dark days of March 2009.

But the risky little secret of the rebound is that it is powered in significant part by the easy-money policies of the Federal Reserve, which must one day end.

To combat the Great Recession, the Fed has bought trillions of dollars of mortgage bonds and U.S. Treasuries to juice the housing market and the economy in general.

On balance these purchases — which go by the non-threatening name of “quantitative easing” — have been warranted, given the deep economic problems caused by the financial crisis. But the time is approaching to scale back the bond-buying spree and get ready to unwind some of the Fed’s massive portfolio, which now tops $3 trillion. The longer the policy lasts, the more likely it will end unhappily.

Dow Jones high on Fed steroids: Our view


#4

The restructuring for the “New Normal” is about complete, Federal dollars are the main dollars flowing in the U.S. now and very small workforces and infrastructure requirements have returned most of the survivors to profitability.

Nothing encouraging here for the working class but as always business will apply whatever market forces and incentives that exist at the time to a plan that enables profit, even the artificial forces and incentives that are handed down by oppressive governments.

Too bad the rank and file Left cannot understand this, if they did they would become Conservatives and actually support things that utilize these market realities to the benefits of actual workers instead of just the money movers.


#5

??? Trekky??? do you know anything at all about the DOW? This is now a Obama Fed prop up sham. It no longer represents the corporate world. All it does is make Obama look good.


#6

[quote=“RET423, post:4, topic:38548”]
The restructuring for the “New Normal” is about complete, Federal dollars are the main dollars flowing in the U.S. now and very small workforces and infrastructure requirements have returned most of the survivors to profitability.

Nothing encouraging here for the working class but as always business will apply whatever market forces and incentives that exist at the time to a plan that enables profit, even the artificial forces and incentives that are handed down by oppressive governments.

Too bad the rank and file Left cannot understand this, if they did they would become Conservatives and actually support things that utilize these market realities to the benefits of actual workers instead of just the money movers.
[/quote] Cept our 401K’s got a little boost.


#7

[quote=“OldStyleBlues, post:6, topic:38548”]
Cept our 401K’s got a little boost.
[/quote]I don’t know much about them but I would cash them now if possible.


#8

Need to recoupe prior losses before doing that.


#9

[quote=“Bigfoot_88, post:7, topic:38548”]
I don’t know much about them but I would cash them now if possible.
[/quote]Trying to “time” your selling and/or buying is a notoriously unreliable investment strategy. Guessing when the market is at it’s peak or when it’s at a low (the famous “dead cat bounce” comes into play here) is more of an art than a science, and one that day traders, with all their charts and scientific analysis, often learn to their disappointment.

The market is notoriously fickle, and resists scientific analysis most often. About the only thing that can be planned on for sure is that over time the DJIA will rise (though it’s always prudent to take into account that small print disclaimer at the bottom of an offering, “Past performance is no guarantee of blah, blah, blah”). But within that time period (sometimes 1 year, sometimes 5, sometimes 10 or more, to see the trend), there are many peaks and valleys, and assorted dead cat bounces along the way.

Trying to time your sale or purchase to mirror those peaks and valleys is a losing game mostly. Some day traders can manage it, but few do. Most go belly up when margin calls kill them . . . or Vido and Quido break their legs.

If the money you have is “play” money and you can afford to lose it on a guess, then maybe guessing is OK for you.

But the 401K’s of the American worker are rarely play money (just ask former Enron employees.)

The best advice I’ve seen is to just place your investment money in no load index funds, and then forget about it 'till you need it at retirement. If you look at the daily iterations of the market, you’re going to get nervous or unrealistically euphoric and be tempted to try timing.

The chances of you thinking “I’m glad I got out when I did” or “I’m glad I stayed in” are equally poor if you base that thinking on instantaneous market iterations.

But I would caution anybody NOT to take investment advice (including mine) from the Internet. Make your own evaluation . . . it’s YOUR money, not MINE. (For example, Internet Stock Boards are frequently home to “pump and dump” schemes. The classic, “Get in on this sleeper now” stuff".)


#10

Haha. I thought I was invincible after getting in at just the right time after the dotcom crash. Then I barreled into stocks again in January 2009, If I waited till March I would be retired right now :slight_smile:

On a related note, I won’t be trying to time a peak any time soon, but I have been moving funds out of some of those big gainers from 2009 into more stable income stocks that haven’t gotten much more expensive since the market doubled than they were 4 years ago.


#11

Start cleaning, I do feel this propped up market will collapse under the weight of worthless paper and fed interference. It can sustain this only so long. probably in about 6 months, maybe earlier,


#12

The DOW is back! So the Economy is back, right? WRONG! The DOW does not account for inflation. I would not be surprise to see a double dip. The stock market is
thriving, yet we have a struggling economy. Unemployment has only decreased because of people dropping out of the labor force. The US is not creating a good business
climate. We tax and regulate our businesses to death. Mr. Obama you were elected to fix the problem. You have only made it worst.


#13

I can remember in the mid-to-late eighties when the economy was doing great, and the DOW closed at 1000, for the first time. Yeah, you read right - a ONE followed by 3 ZEROS.


#14

Your guys have a couple good years in the stock market, then you should totally sell. That’s when it’s going to get really bad. Btw, that is what Warren Buffet is doing.


#15

Hurray, I have no actual money in stocks…


#16

I don’t either. My money is in gold. This economy is a ticking time bomb just waiting to induce a nuclear explosion.


#17

I don’t have stocks or 401k. I have not contributed since 2008. We took out our 401k to pay off bills. I invest in poor man’s gold…ammo. People that put their trust in gold will starve. I would not give you my food or bullets for gold. Maybe some KFC wipes though… :slight_smile:


#18

Hear, hear!

Primitive cultures still value gold though. I tried to explain to one ‘gold bug’ that gold has no practical value. The person responded by typing that gold is value. At one time gold was but that ended with the prudent abandonment of the gold standard. A convenient and low cost medium of exchange for things of practical value is all that is necessary.


#19

Federal Reserve notes have no “practical value” either.

And yet both have monetary value.


#20

Federal Reserve notes are the US’ selected medium of exchange for things of practical value. They are convenient and low cost.

FRB: How much does it cost to produce currency and coin?