8 Weeks Of Gain For The Market
Talk about a nice run. The Dow Jones is on a very impressive run after taking a tumble 8 weeks ago. This weekend, the industrial average closed higher for the 11th time in 12 days, and that helped the index closed well, matching its longest string of gains since January 2004.
Of course, marketers being marketers, they keep warning that things could start falling back at any time, but that’s inevitable; I could say “it’s going to fall one day” and of course I’d be right. In this case, the experts are saying that there’s no real reason why the market is climbing as much as it is overall, and thus they feel that things are going to adjust themselves and the market will eventually come back to realistic numbers, whatever those are.
I’ve always said that the stock market doesn’t seem to represent reality all that much, and I couldn’t figure out last year why it had gone above 10,000 in the first place. Now it’s sitting above 11,000, closing at 11,204 on Friday, yet unemployment is still high, Chrysler posted a big decrease this week, and one would have thought there would still be repercussions from the SEC suit against Goldman Sachs, which is still big news.
On the other side, the housing market got great news by hearing that new home sales jumped 26.9%, the highest in 47 years, and a couple other companies came in with nice reports as well.
Just to be fair and balanced, the NASDAQ didn’t do so well, falling 4.3%; I guess the love affair with the iPad and investors is over.