Here Comes Dow 13,000

The stock market is up this morning and the Dow Jones Industrial Average is a mere 10 points from cracking 13,000.

I hope this will be different from the eight previous times we’ve broken 13,000. (That’s not an exaggeration. From April 2007 to May 2008, the Dow broke through 13,000 on eight different occasions going by the daily close.) If the Dow had merely kept pace with inflation over the last 12 years, it would be at 13,837 today.

The S&P 500 is currently up to 1,366 which would be a post-crash high. Today could be the highest close since June 5, 2008. That was 44.5 months ago.

On Friday, the Wilshire 5000 Total Return Index, which is about the broadest index possible, closed at its highest level since October 2007. That index includes dividends. By my math, we need a jump of 0.89% to make an all-time high. The Wilshire 5,000 is up 0.33% so far today.

Posted by on February 21st, 2012 at 11:16 am


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