The Dow Jones Industrial Average, a poorly representative mix of 30 large publicly traded stocks, which is weighted for price rather than market value, just met an arbitrary number that really means nothing to the larger economy.
Sorry, just not a DOW fan (obvs) had to get that off my chest.
Here's a 200mph DOW:
In other news:
People get one year older every year.
Sorry, but the obsession of the news / financial people with this arbitrary and functionally meaningless number is quite silly. Yes, the market goes up (in general), that is what it does.
aircooled wrote: In other news: People get one year older every year. Sorry, but the obsession of the news / financial people with this arbitrary and functionally meaningless number is quite silly. Yes, the market goes up (in general), that is what it does.
And it bears little resemblance to the overall economy. Unless is totally crashes.
It also has little impact to the overall economy. Unless it crashes.
Absolutely no reaction here!
Buy high! Sell low!
Craigslist version of thread title: The Dow brakes 20,000
There is a psychology to it. The Dow making highs makes the news and people who maybe haven't been investing think they've been missing out and maybe bump their 401k contributions. Or people who are 61 stop and take a look at their retirement accounts and wonder why the hell they're working and they retire and a new position opens up. The number is meaningless, but that doesn't mean it's inconsequential.
20,000. 20,001. Whatever it takes.
GameboyRMH wrote:
It's not really a bubble though. The dow is at about 8% annual returns which is its average since they started tracking the Dow.
There will be a correction... then it'll go back up past where it is now. Then there'll be another correction. Then it'll go back up past that peak.
pinchvalve wrote: 20,000. 20,001. Whatever it takes.
A mr mom reference. Excellent.
In reply to dculberson:
I've been reading arguments to the contrary... we'll just have to wait and see.
Naturally, this happens right after I increase my 401K contribution (sigh...).
The DOW hit a new high today because the consensus of investors (from private to institutional) is that future earnings are going to be higher.
20,000 does have meaning because humans, for whatever reason, pay special homage to round numbers…did you celebrate your 15.87th birthday or your 16th birthday?
Combine the two (optimism about the future and milestone attainment) and you’ve got something that’s news worthy in my opinion.
During his first inauguration speech in 1932, FDR famously said “The only thing to fear is fear itself”…I think the fella was really on to something with that catchy line and I’d add that the principle works just as well in the opposite direction…believing that the future is going to be good increases the likelihood that it will be.
So, for all of you naysayers...
In reply to RX Reven':
That's all well and good but the DJIA is an extremely poor representation of the stock market, let alone the economy at large.
In reply to Mister Fister:
Just a heads up, this forum is decidedly purposely non political discussion having. The easiest way to get something shut down is to mention what team you're rooting for.
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