Dow 11,000….Nice!
By David Feldman at 13 April, 2010, 6:20 am
The Dow Jones Industrial Average closed above 11,000 for the first time since September 2008 yesterday. We’ve come a long way. Last night I was watching the cable show Mad Men, and a TV report in that early 1960s show was talking about the Dow “surging” almost two points that day.
The market is back. We still have a ways to go to get back to the all-time high of 14,164.53, which was hit way back on October 9, 2007 just as the credit crunch began to have an impact on the market. But boy oh boy has the market surged from its low back in March 9, 2009 of 6,547.05. No question the economy, while shuffling back from recession, still has major pockets of struggle. Many are still unemployed. Real estate is still in the toilet in many places.
But as we know, the market is a leading indicator, and it’s been heading up fairly steadily since that low back in March of last year. Is it real? Fake? Market surges are always real because folks’ very real pension and other investment money increases in value. This makes people feel more wealthy and more willing to spend money, which helps bring the economy back. More people are saving, which is good in a vacuum but slows the recovery, which is part of what is happening here. And of course an up market helps wake up the capital markets, including the financing world associated with reverse mergers and other going public transactions. Go bull market!
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