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Dow Jones continues to break records
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by ryan | July 17, 2007 at 10:54 am
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US stock markets are on a tear - and it's not clear why. US debt is the highest in history, the war in Iraq is floundering and eating up resources, and the public seems to be losing confidence in the presidency - at least the current administration, and inflation is creeping up. Yet the stock market continues to break records.
The stock market's best-known indicator crossed 14,000 in the first half-hour of trading and rose as high as 14,011.79, having taken just 57 trading days to make the trip from 13,000.
Perhaps it is exactly these challenges which the economy
faces and nevertheless maintains some level of growth that the
markets are reacting to. Even though there are stresses on the economy
consumers are still spending and the economy is maintaining a moderate
level of growth. The markets see this as testament to the durability of
the economy and the continued ability to maintain growth and drive corporate earnings.
Stocks have risen fairly steadily since the spring amid a continuum of buyout news and evidence that despite higher fuel prices and the ongoing problems in the housing market and mortgage lending industry, consumers are spending and companies remain optimistic about the future. With the Federal Reserve ever vigilant about inflation, any news that prices are rising at a moderate pace has added to the market's momentum, as it did Tuesday.
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Most RecentMost Recommended Comments (3)
at 15:58 on July 17th, 2007
Thanks for this, Ryan. This money/markets stuff confuses the hell out of me, but you've helped shed a little light. Good stuff.
at 19:41 on July 17th, 2007
Thanks for getting this up! Let's hope the trend continues despite sub-prime lending in the housing market causing a shake up. Good stuff.
at 11:44 on July 18th, 2007
I think that's the point and where this market surge is coming from. Even though there have been these stresses the economy is still growing, consumers are still spending (not as much as before but no matter) and, perhaps most importantly, earnings are up. These factors are far from artificial I think they indicate a durability that the US economy has not seen before. And the fact that bankers are learning how to properly control inflation only helps the matter.