Tuesday, March 5, 2013

Wow, Who Knew? Dow Breaks Record

The Dow Jones Industrial Average broke through levels last seen in 2007, prior to the Great Recession, to close at a record high of 14,253.77.

It hit a new all-time intraday high of 14,286.37, spiking above its previous all-time high of 14,198.10 from October 2007. So far, the index is up nearly 9 percent in 2013, surpassing the 7.3 percent gain for all of 2012.

Could this have been spotted? This is what I wrote at the start of the year on January 3 in the EPJ Daily Alert:
Data coming in from all directions indicates that Bernanke's latest money printing spree is having its impact. Until the Fed changes its monetary policy, it will be very strong U.S. stock markets, housing markets and commodities. This is not the time to be shy about the markets. Consider any weakness to be a buying opportunity for short-term trading and long-term holds.
But what about the downtrend in gold? This is what I wrote about gold in the same ALERT:
Gold will be tricky in here. There may be a slight downward trend as those who moved into gold for safety leave gold in the flight AWAY from safety. However, longer term, price inflation will result in a new upward turn in gold. Thus, accumulate gold on any weakness.


  1. I try to sell people on your daily alert like I'm getting paid for it. People like to ask me why I seem to be right about most of the economic trends, and I tell them it is because I have enough economic knowledge to know who is not full of shit, and I parrot most of what I get from your daily alerts.

  2. maybe that dow 50000 wasn't far of the mark after all but at that point a gallon of gas will be about 20 bucks if you can find it.

  3. ". . .Bernanke's latest money printing spree is having its impact." I have no confidence in a market based on the FED's easy (reckless, destructive) money printing and not increased economic output. Unemployment is still high, income is down, taxes are up - this does not bode well for the future.

    ". . .It (the DOW) hit a new all-time intraday high. . . spiking above its previous all-time high. . . from October 2007. . ." This looks too much like the run-up to the 2008 crash. All this hype about the new high smells like a big "pump-and-dump" scam being run on the typical investor. People are desperate for returns but they are not looking at what is driving this market. We have a phony, debt based, economy based on extremely low interest rates and money printing. Everyone who lost in 2008 will lose again when the sell trigger is pulled on this "pump-and-dumb" gun pointed at investors. Good luck.

  4. No inflation here. No inflation. Move along. Move along.