The Dow Jones Industrial Average ($INDU) roared through the 12,000 mark as stock trading began today, contributing to a frenzy among at least some money managers and members of the financial press that has psychological, if not mathematical, significance for investors.
Yet 12,000 is just a number -- just as 11,000 was when the Dow crossed that level more than six years ago. We surveyed Wall Street prognosticators to see whether investors should begin to party like it was 1999 (again). The consensus seems to be that conditions for equity investors are good but not great.
Al Goldman, the chief market strategist at A.G. Edwards, downplayed the significance of Dow 12,000: "This is much ado about nothing, as Shakespeare would say. The important thing is not for the Dow getting above 12,000 but what it took to get us up here and why we got here." (READ MORE)
Notice there is no credit for the main economic driver, the Bush tax-cuts, but rather that this is some arbitrary number. That money being held on the side-lines was invested because the taxes on it would be a lot less now than if there was a Democratic President or worse a Democratic Congress.
Face it people, the tax-cuts are good for the economy, to repeal them or let them die because you ahte a single man is foolish.
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