Dow ends at 6-year high (How would you ever know ???)

ABC ^ | Apr 26, 2006 | By Chris Sanders

[ChadGore]

15k by 2007

[xcamel]

Behind every silver lining is some big dark cloud, eh?

[ConservativeStatement]

Col. David Hunt was on Howie Carr's radio show today and he made a comment about the news "All it is is missing blondes in Aruba and rape allegations at Duke."

[DAC21]

Personally, +16% for the year...

If that's just year to date (4 months)that's fantastic.
I'm at 6% year to date, and 16.48% for 12 months. Not great but pretty solid. I kept it very diversified.

[Trust but Verify]

Did I forget something?

Halliburton

[wardaddy]

sounds like the same time I started (b1957) but real wages for folks in the lower wage areas are pretty stagnant

home prices are bubbling and quite high in desirable areas

gas is affecting folks bringing home less than 400 a week after taxes if they drive much

Now...had I been rich in 1980 and debt free, those 20% Munis would have been sweet

it's all a matter of perspective

my point is that the DJIA is not that universally indicative of great times by itself and we do have some negative trends

and that a lot of this...particularly indices are out of any POTUS's control except over from a distance and over the long run

and that of course the MSM would never credit Bush anyhow...they hate him...they let Toon get away with claiming credit for the internet fueled 90s boom

[Denver Ditdat]

"The Dow Jones industrial average <.DJI> ended up 71.24 points, or 0.63 percent, at 11,354.49, its highest close since January 19, 2000."

Interesting date.

I'm racking my brain, but I can't think of the significance. What happened on that date?

[fzx12345]

The Clinton administration entered its final year?

[wardaddy]

I'm not happy about gas prices, housing spikes and lulls in tax reform, or a FED continuing to ride hard on rates.

nor am I gleeful over increasing local taxation here in TN.

my point is that a good DJIA is just what it is...a good DJIA and largely is outside POTUS direct influence

and I am not poor btw....it's not a class thing, I'm not jealous of a good DJIA...it helps me personally quite a bit

I just see problems coming , the DJIA notwithstanding....we seem to be coming to a life of living with over 50 bucks a barrel oil and can't make any headway to produce more or open more refineries and we are exposed almost everywhere there is oil to be found from VZ to our Enviro wackos to the ME....one good stumble and we could be over 100 bucks a barrel

which is exactly what gave us the horror scenario Warren Pierce reminded us of upthread from 1980...the 70s oil crisis....that any Carter's awful fiscal spending and taxes...we are vulnerable and for folks like me carrying huge commercial mortgages, it's dangerous if my balloons hit during a spike like 1980

btw....i have argued with the goldbugs here for years that equities were the way to go...still believe that but we're close to a topout again....rememebr it took 6 years to get here...almost to a day....May 2005, I remember....I lost a bundle ...but mostly on the NASD...which may never get back to that mark in my lifetime again

[fedupjohn]

To be fair, and play devil's advocate, it can be viewed as stagnation over 6 years, in that it dipped and just returned to its high. You would expect about 10% growth each year, on average, and with compounding, you're looking at up 77%... So, even though that's somewhat aggressive, the Dow, by those (admittedly somewhat lofty) standards, the Dow should be at the 18,000 level by now...

Thats not completely accurate. The run up of the DOW-30 during the 90's did not come with the natural and needed retracements and consolidations.
If it did the 11K+ high would have not been that high.
In 2003, I did some work for a Bond Trader on Wall Street, he said the retracement needed to get down to about 7K +/- before it will be able to build a foundation.
He was right on. If you look at the charts now, there has been a step program and the advances have been built on earnings reports and not speculation.

But thats just my opinion and what do I know.SACRASM

[conservative physics]

Impossible, the stock market only goes up when Democrats are President, the same as the homeless only exist and good jobs are hard to find (regardless of the unemployment rate) when republicans are president.

[xcamel]

And they go up BIGTME when they're based on an Internet bubble of smoke and mirrors invented by AlGore

[Choose Ye This Day]

Keep one very important fact in mind: Back in early 2000, at the peak of the Clinton Bubble, the price/earnings ratio on the Dow was over 40. Stocks were very expensive--highly overvalued, even those not in the tech sector, like the boring old Dow Jones Industrials. The Clinton good-times-phony-baloney-plastic-banana era of irrational exuberance was causing people to pay ridiculous prices for even mediocre companies.

That just couldn't last.

Today, the P/E ratio on the Dow is more like 18. Much closer to its historical average, and much closer to normal valuations.

For the Dow to be at 11,350 with an average P/E of 18 (not a fake, inflated P/E of 40) really says something.

[Cinnamon]

wtf this is even better than during Clinton's term reffering to baby jumps in the Dow Jones as the signaling of the greatest economy in the last 50 yrs or so..

why is MSM so silent?

[Choose Ye This Day]

See my Post #53.

No market moves in a straight line. You don't get 10% average annual returns in the market without some really brutal negative years and some really stellar years.

The market was WAY overvalued at its peak in the Clinton Bubble years. Now the valuations are back down out of the clouds, and the market is still chugging along.

[RightWinger]

My 401K is making more this year than I am working 40 hrs a week.

But, the American sheeple think the economy is in bad shape, go figure!

[maica]

LOL! I love the humor at FR

[hford02]

the price of gas is the canary in our economic mineshaft. American consumer confidence is riding on the price of gas and the media is going to sink this administration with it. The Dims never collect responsibility for ignoring the energy supply forcast that Cheney's committee outlined 5 years ago. This trainwreck should be blamed on the Sierra Club and the Democratic Party.

[Mo1]

:0)

[tobyhill]

House sales were up also but the MSM's back up for that was prices dropped. Tomorrow's Headlines will be "Housing Cost Prevent Low Income From Buying".