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…)