December 22, 2004

EVER UPWARDS:

Dow Hits Highest Level Since '01: Bargain hunting amid the year-end stock rally helps lift the blue-chip index to 10,759.43. (Tom Petruno, December 22, 2004, LA Times)

For Wall Street, it was better late than never: The Dow Jones industrial average closed at a 3 1/2 -year high Tuesday, becoming the last major market index to top its best levels of last winter.

The Dow jumped 97.83 points, or 0.9%, to 10,759.43. That eclipsed its previous 2004 peak of 10,737.70 set Feb. 11 and was its highest level since June 13, 2001.


Posted by Orrin Judd at December 22, 2004 8:41 AM
Comments

oj-

Dow theory says the move is sustainable. Earnings should continue to expand while multiples are still reasonable. Keep your eyes on the Fed, treasury yields and fiscal policy. A positive overseas story seems to be getting priced in. First Q' '05 is looking pretty good.

Posted by: Tom C., Stamford,Ct. at December 22, 2004 9:45 AM

Two years ago when the Dow was at its low for the current period, there was a flock of stories showing how badly people would have been if they had their own Social Security individual investment accounts, as opposed to letting the good ol' government handle all the money.

Aside from the fact those stories were deceptive by themselves -- assuming people would be allowed in the first place to put their money into high growth/high risk funds or even an S&P index fund -- it would be nice to see an update on this analysis now that the market is showing such post-election strength.

Posted by: John at December 22, 2004 10:09 AM

11,000 would be a nice inauguration present, don't you think?

Posted by: Timothy at December 22, 2004 12:38 PM
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