Dow Jones recording to 13-month high is a big deal, of course even bigger now considering the mess we are living though. For any economy emerging from what has been the most crippling of global recessions since the Great Depression, any sign of good news is certainly a good headline. Not too long ago, I was one of the people jumping for joy when the Dow hit the 10,000 mark, and my level of optimism has remained in full gear up till this point. Again, no one is saying that the economy is back on level at this moment, but a ‘better-than-expected’ housing market report is another positive sign that we may very well be heading in the right direction. In the next few days we will know exactly how much of this renewed sense of Wall Street optimism translates into consumer confidence.
I am usually not the kind who wakes up to Bloomberg News every morning but I know a thing or two about positive signs and the economic ramifications of stock market activities. For the sake of reference, the Dow Jones industrial average gained 133 points, or 1.2%, closing at 10,450.95, its highest point since October 2, 2008. In that same vein, the Dow rose as much as 177 points in the morning, to 10,495.61, the highest trading level since October 3, 2008.
My point? If indeed the stock market is the reliable leading predictor of economic trends that business school have convinced some of us to believe, perhaps the good times are closer than we think. I hope so anyway.
