Bulls & Bears: A Look at the Dow Jones Beyond 20,000


Unless you've been living under a rock, you know that this week the Dow Jones Industrial Average (we talked about it earlier this week on Macro Mondays) crossed the $20,000 mark for the first time ever. It's quite incredible and worth mentioning since it took the Dow almost 103 years to reach just 10,000 in 1999 and another 17 years for it to double that amount.

More interesting than ALL of this is the fact that the last 1,000 of those points to reach the 20,000-milestone took an incredibly short amount of time -- a mere 42 days. Clearly the biggest change during all of this time is Trump becoming president, and ultimately the blue-chip heavy Dow Jones gained value thanks to his moves to promote infrastructure projects (um...like the Mexican-border wall) and cutting regulations.

Since Election Day 2016, the U.S. stock market has gain a record $2.0 trillion in wealth -- for reference, that's over 10% of the US annual gross domestic product in just 46 days.

All of this is very exciting, but very disturbing.

Optimism is great, but not having enough substance to back up that optimism is rather worrisome, at least in the near-term. The nice thing is that after several attempts, the Dow finally established a new ceiling and floor for its prices, and it subsequently this will lift the overall averages and price targets going forward.

At the same time, it is not a time to shy away from investing in the market. Your retirement funds will be heavily fueled in the near-term, while Social Security may slowly be phased out over time. You never know. Anything can happen in this new economy apparently.

Everyone should be smart and vigilant about their money and always invest in companies with smart management teams and engage in business activities that you like and understand.

Featured Posts
Search By Tags
No tags yet.

© 2018 by Jennifer N. Coombs and GradMoney. Proudly created with Wix.com

 

All rights reserved. Use of this Site constitutes acceptance of our terms and conditions and privacy policy.

 

Restrictions: The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of GradMoney or Jennifer N. Coombs.

 

Disclaimer: All data and information provided on this site is strictly the author’s opinion and does not constitute any financial, legal or other type of advice. GradMoney, nor Jennifer N. Coombs, makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses or damages arising from its display or use. We also do not make any personal investments on behalf of readers, nor do we offer specific trading recommendations to readers. GradMoney is not a licensed broker dealer. All investment actions as a result of GradMoney’s articles are to be made at the discretion of the individual investor. All investments contain risks; GradMoney assumes no liability for any loss of income or principal.

 

All questions or inquiries my be directed to the attention of Jennifer N. Coombs.