DOW (Index of 30 Blue Chip Stocks) Sets Record High for 2nd Consecutive Day. Bulls in Control.
Congratulations to all the bulls out there as the market barreled forward to another record high. For the second day in a row the DOW (index of 30 blue chip stocks) closed in the green and for the second day in a row the DOW set a new a record high that has stood since January 14, 2004. The DOW soared 123 points to 11,851 while the NASDAQ ended up 47. The two big catalysts for the current market momentum is the ever-shrinking cost of oil (and thus greater potential for big business to post satisfactory earnings numbers) and optimism that the Federal Reserve will lower interest rates in the coming months/years. This all in spite of many feeling that the economy is cooling down.
On the flip side, today's investors are smarter. Let me re-phrase that, today's investors are more cautious than they were nearly 7 years ago. Gone are the days where you could blindly throw your money into any .com or high-tech company and watch your money double and triple in a matter of weeks. The change in investor attitude is the reason why it has taken the Dow so long to come back and I feel that a steady, cautious growth like we have experienced is much more healthy to the economy and I look forward to what 2008 will bring. Congrats to the bulls again.