The Dow Jones has finished on a closing price above 13,000 for the first time since May 2008 – also the last time anybody on Wall Street smiled.
Tuesday was the historic day in question, and saw investors bid the closing price of the Dow Jones industrial average up to 13,005. Increasingly, it looks like the best-known stock measure in the U.S. is recovering its confidence, years after the financial catastrophe that was 2008-09.
Mark Lamkin, CEO of Lamkin Wealth Management, told USA Today:
“Dow 13,000 shows the market still works, that we are still recovering, that investing principles are alive and well.”
He added that a sustained recovery was key in restoring a “new-found confidence.” In fact, some people are already getting very excited by passing the 13,000 mark. Wasn’t over-excitement how we got into this in the first place? Well, Dan Wantrobski, director of technical research at Janney Capital Markets, doesn’t care. Feeling the euphoria, Wantrobski said:
“Dow 14,000 is doable.”
He’s not alone, either – many traders feel this fresh climb upwards could threaten the Dow’s all-time record – it hit 14,164.53 in October 2007. Yet many are warning against overconfidence. Walter Zimmermann, chief technical strategist at United-ICAP, is one such cynic:
“The Dow is more likely to hit 12,000 before 14,000. We think the market’s continued upside can be measured in weeks, not months or years. There are enough warning signals to warrant caution. People should be taking profits, not adding to their positions.”