With Jane Clayson in for Tom Ashbrook.
The Dow hit a record high. What’s behind the jump? And what’s the big picture economic message?
Yowza, yowza. The headlines are big and splashy: The Dow has roared back. Twice this week, it’s topped old record highs going back to ‘oh-seven’ –in the days just before the Great Recession.
After all the dire sequester warnings, it’s a good omen, right? Can we dare hope that if stock market investors are feeling good, something good is finally happening to our economy?
Are the jobs coming back? Will our 401ks start growing like fatted calves? Well, life isn’t simple and neither is the economy.
This hour, On Point: We talk markets, the economy and hopes for the future.
From the Reading List
The Washington Post “The benchmark Dow Jones industrial average reached an all-time high Tuesday, underscoring the contrast between corporate America’s rapid recovery since the financial crisis and the rest of the country’s ongoing struggle to regain its footing.”
Time Magazine “The reality is probably much less exciting. ‘Investors should curb their enthusiasm,’ says Mitchell O. Goldberg, president of ClientFirst Strategy. Experts say the Dow’s record high means relatively little in the grand scheme of things. Here are a few reasons why:”
Chicago Tribune “Ric Edelman, a Fairfax, Virginia-based independent financial adviser, said one of his clients called this week and asked him to send $62,500 because he had decided to buy a Porsche. That client, Edelman said, was reluctant even to buy a used Corvette for $10,000 just a few months ago, but he had since realized that his portfolio gains mean he could afford to spring for the car he really wanted.”