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Posts Tagged ‘DOW’

Dow 12,000…Now What? Part II

Friday, June 10th, 2011

Yes… the image you see is what Dow 12,000 looks like coming from the other (less desirable) direction. Today marks the sixth time the Dow Jones Industrial Average has crossed the 12,000 level since the first time on October 19th 2006 (no relation to Black Monday, October 19th 1987).     We felt this was an opportune time to revisit our post from January 27 of this year entitled Dow 12,000…Now What?’ and to share our sentiments on the current environment for the economy and the financial markets. 

The market has declined now for six straight weeks and the decline accelerated recently when a trifecta of negative indicators came in worse than expected.  These areas of weakness included housing, employment and consumer confidence.  As of this writing, the tech heavy NASDAQ composite has slipped into negative territory for the year as the technology, materials and financial sectors have declined the most over the last month.  Utilities, healthcare and consumer staples have held up best over the last several weeks.  (more…)

Dow 12,000…Now What?

Thursday, January 27th, 2011

With the Dow Jones Industrial Average trading above 12,000 (intraday) the last several trading days, we felt compelled to share some thoughts and opinions on the markets.  For starters, what a wild ride it has been.  It was just under two years ago (in March of ’09 ) that the Dow dipped all the way down to 6,440.08  from a previous all time high of 14,279.96 back in October of ’07.  Simply put, the Dow declined 54.9% and has rallied 86.33% and now remains down 2,279 point or 16.28% off it’s all time highs.

Dow Jones Industrial Average

So what’s an investor to do when “The Market” is up 86.33%, interest rates remain at multi-decade lows and commodities (materials, metals, agricultural, and oil to name a few) are teetering near their all time highs? If you don’t pay taxes, don’t need to spend your money and aren’t worried about inflation, the answer might be nothing.  It is possible you might even “beat the markets” (all of them) by sitting in cash.  The problem is that “relative returns” don’t put food on the table, pay the mortgage or take you on vacation. Furthermore, after taxes and inflation, you really end up going backwards when you go sideways.

If you’re concerned about the markets getting a bit “toppy” and that we are either long in the tooth for a correction of if you are optimistic that  the economy is in a legitimate recovery yet we just need some time to catch up with the strong rebound, click below on “read the rest of this entry”  and see 4 suggestions to help enhance returns and put the risk of your portfolio in check.