Posted on 10/04/2006 10:37:12 AM PDT by MNJohnnie
Dow 11,801.14 73.80
Nasdaq 2,272.05 28.40
S&P 500 1,343.18 9.07
(Excerpt) Read more at marketwatch.com ...
Hmmmm.obviously share market not concerned that GOP is going to lose congress
DJIA up 101 points at 1145 Pacific Time.
This does pose at least a psychological boost, in the sense that the public feels a cieling has been broken, and those that feel optimistic about the future have a new benchmark to point at.
Beagle, my hubby and I bought gold many, many years ago on advice from some "financial" magazine. Boy, I wonder if we'll EVER get our money back on that one! LOL!
Best part is, I did make it before the Rove pic! LOL
Most of these other indexes are back in the ballpark of their all-time highs. The S&P 500, for example, peaked at around 1,520 in 2000 and is at least within striking distance of that number.
The NASDAQ isn't even a real index, as far as I'm concerned -- mainly because it's "historical high" was based on prices of stocks that didn't even have legitimate price/earnings numbers (they didn't have any earnings).
The idea that the DJIA level is only legitimate if the same companies are used is foolish. The individual companies are weighted and they have constantly been changed to reflect industry.
When the average was first introduced it had a number of railroads, Western Union and even leather companies. Would you really want to use those companies today? Do you really think that getting rid of Sears and adding Walmart was a bad idea? Should Studebaker still be on the list?
http://www.quasimodos.com/info/dowhistory.html
Based on the theory that the market and real estate both compete for the same dollars, when I was convinced the Real estate bubble was going to pop, I shifted my investments over to stocks. Granted, this was only a couple of months ago...
Like I said, it wasn't all that long ago (and I consider it the mid-80s).
Actually, she's deeply soddened.
Just got this in an email from a financial newsletter:
The markets have been a bit stronger than we expected here, but note that the Dow's all-time intraday high on 1/14/00 was 11,908.50 before it closed at 11,722.98. So, although we have broken above the all-time closing high, we have yet to head into new territory. So, the real resistance is at 11,908.50 and we are less than 1% away from that target.
The market has been on an upward climb since March, 2003. The housing market has also been climbing most of that time.
Does anybody know what the dow was on Bush's first inauguration day. The Clintonites keep pointing to the 11,700 number but that is not what the stock market was when he left office. They try to blame Bush for every point the dow was below 11,7 and hope nobody is paying attention.
I'll be interested to see how CBS, NBC, ABC, CNN portray this. It will have to be mentioned on the nightly news, however there will have to be huge BUT..... attached to it. All the producers are scrambling now trying to devise a way to show a scary downside to it all.
If you do it that way, then you also have to add every dividend paid out by these stocks to the cumulative total.
There's a reason why the DJIA is reaching record highs while other indexes are still off their all-time highs, folks. The 30 stocks in the Dow index tend to be older companies whose performance is an accurate indicator of the nation's industrial strength as a whole. These companies tend to pay the best dividends over time, and investors are willing to pay a premium for these stocks (especially in the aftermath of the tax cuts on dividends implemented in 2002-03). The dot-com bust of 2000 and the outright fraud involving companies like Enron, Global Crossing, etc. taught a valuable lesson to us all. Even if you have no faith in a company's financial statements and suspect that an earnings report is complete bullsh!t . . . it's impossible for a company like Enron to falsify their dividend payments.
Yes, it's been best to view those times as a selling opportunity.
Details? Are they weighted the same way as other indexes?
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