DJIA Closes Within 15 Points of Historic Mark
The Dow Jones Industrial Average (DJIA) continues its assault on the 20,000 level, as the index closed today at 19,974.62 after hitting an all-time high of 19,987.63.
At this point, the DJIA hitting the historic 20,000 level seems like an inevitability before the end of the year. There isn't a hint of bearishness in the markets right now, as many investors have clamored to put their money back to work following President-elect Trump's victory over former Secretary of State Hillary Clinton in November. There doesn't seem to be anything that could disrupt this bullish mood between now and the end of the year, which is why many feel that the DJIA piercing the 20,000 level is a foregone conclusion over the next 10 days.
The story remains the same - banks, led by the likes of Wells Fargo and Bank of America, continue to lead the markets higher. In addition, infrastructure plays (steel, etc) continue to be strong as well.
Many investors took some or all of their money out of the market in the lead-up to the Presidential election in November. The general assumption was that Hillary Clinton would emerge victorious, but that a Trump win was still possible. A Trump win, it was thought by many at the time, would result in the markets tanking.
While Trump did emerge victorious (his victory was made official by the Electoral College yesterday), the markets did the exact opposite of what many people figured would happen. The markets, buoyed by the prospects of a stronger economy with less regulations, have gone up practically every day since Trump won the election. This has brought the DJIA perilously close to the 20,000 level.
The DJIA hit the 10,000 level on March 30, 1999 for the very first time.
At the time, the markets were in a euphoric mood, and many floor traders wore hats and T-shirts to celebrate the Dow Jones Industrial Average pushing through the 10,000 level.
The markets would continue higher for about another year before falling off a cliff in the spring of 2000. At the time, the move lower was led by the dot-com stocks, which would end up spectacularly imploding.
Over the past 16 years, the markets have had to endure plenty - the "Great Recession", terrorist attacks and more. All of that is in the past now, however, as investors are feeling overwhelmingly bullish once again.
Filed under: General Market News