Dow Hits 12k: Does It Matter?
26 January 2011
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We like to make big deals of these levels in the Dow. We crossed 12,000. Does it matter? Well, first, I’d say that the Dow is sort of archaic and the S&P 500 is a better index. Regardless, though, if you’re a bull, you’re cheering the new level. The reality though is that 90% of these bulls only care about what the stock market does this year. This is a terrible way to invest. Ignore the short term cheering, and focus on the fundamentals, and the big trends that you know are in place. If you missed it, I outlined some of these trends here.
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I think it will stay around this level for some time. It may have some ups and downs but overall it will be steady I believe.
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