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DOW 26000! +1000 IN WEEK

Dow breaks above 26,000 for the first time, Merck and UnitedHealth jump

The Dow rose broke above 26,000. It first traded above 25,000 on Jan. 4.

The S&P 500 and Nasdaq composite also hit record highs.

UnitedHealth and Citigroup reported better-than-expected earnings.

U.S. stocks traded sharply higher as investors chased a market breaking out on better-than-expected earnings and rising economic optimism under President Donald Trump.

The Dow Jones industrial average broke above 26,000 for the first time earlier in the session. At 11:13 a.m. ET, the Dow traded 140 points higher, slightly below the milestone level. The 30-stock index was boosted by gains in UnitedHealth, Boeing and Merck.

It took the Dow just 12 calendar days to move from 25,000 to 26,000, making it the fastest 1,000 move on record for the index. It first traded above 25,000 on Jan. 4.

...

More at:
https://www.cnbc.com/2018/01/16/us-stock-futures-dow-fed-spe...
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It took the Dow just 12 calendar days to move from 25,000 to 26,000, making it the fastest 1,000 move on record for the index. It first traded above 25,000 on Jan. 4.

That's a 4% rise in 12 days. There are a lot of single days with higher gains on a percentage basis.

PSU
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That's a 4% rise in 12 days. There are a lot of single days with higher gains on a percentage basis.

PSU

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Yes, but for someone who is over 95% invested in the market, THIS 4% rise is the one that counts NOW. That's real money in only two weeks. Why would someone who made good money so far in 2018 care a hoot that there were single days in the past that have beaten it? Does that somehow invalidate their gains?

Here's another chance to patiently explain to retail expert desertdave that point gains and percentage gains are two different things.

What's up with the sour grapes?

Next up will be a post that the gains are artificial because the fed is boosting assets. So it's not a valid market. More sour grapes.
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PSU

That's a 4% rise in 12 days. There are a lot of single days with higher gains on a percentage basis.

Interesting to see volatility spike higher when the Dow is rising though...usually volatility recedes during market rises and spikes during declines....anomaly or not? I guess time will tell.

http://stockcharts.com/h-sc/ui?s=%24VIX&p=D&yr=1&...
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Yes, but for someone who is over 95% invested in the market, THIS 4% rise is the one that counts NOW. That's real money in only two weeks. Why would someone who made good money so far in 2018 care a hoot that there were single days in the past that have beaten it? Does that somehow invalidate their gains?

Actually, it is unrealized gains. It doesn't become real money until you sell. There were a lot of millionaires with unrealized gains in 1999 and 2007.

So to answer your question about in 2018 care a hoot, I really don't care. I'm investing mainly through index funds and I'm not in the selling phase. So I don't give a hoot at this time.

PSU
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Didn't last long, did it?

Steve
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Didn't last long, did it?

Unless you are a real good market timer, it seems real money was lost today. Hmmmm...where are our cheerleaders?

PSU
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Unless you are a real good market timer, it seems real money was lost today. Hmmmm...where are our cheerleaders?

I've seen this movie before. This is when the cheerleaders hear something strange and decide to split up and investigate.
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I've seen this movie before. This is when the cheerleaders hear something strange and decide to split up and investigate.

Isn't this where someone posts the "buy the dip" video?

Steve
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When I told Grandma (sometime in the 1980s, I guess) that I was making good money in the stock market, she said, "Ahhhh....but is it all on paper?"

Grandma and Grandpa took a cruise to Europe in October 1929. While they were there, they met American expatriates who had been wealthy due to stock market gains, but lost so much in the crash that they couldn't even raise the money for a ticket home.

I absorbed the lesson and bought a house with part of my assets. I learned about the 1929 crash from Grandma but witnessed the recessions of 1974-75, 1980-82, the 2000 stock bubble burst and the 2008 financial crisis personally. As a result, I never invest money in the stock market that I could conceivably need in the next 10 years.

Wendy
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<Yes, but for someone who is over 95% invested in the market, THIS 4% rise is the one that counts NOW. >

Carbonbased, what would happen to your family if (heaven forbid) something bad happened during a bear market, when your portfolio was down 20% or more? For example, if you and your spouse lost your jobs at the same time, as happened to DH and me in 1997?

Is it really safe to be 95% invested in the market? Especially when the market is rising so much faster than GDP, as happened in 2000?

Wendy (wishing you the best)
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Is it really safe to be 95% invested in the market?

That would depend. If the other 5% is $20,000,000 of Treasury paper then yeah, it's pretty safe.
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Carbonbased, what would happen to your family if (heaven forbid) something bad happened during a bear market, when your portfolio was down 20% or more? For example, if you and your spouse lost your jobs at the same time, as happened to DH and me in 1997?

Is it really safe to be 95% invested in the market? Especially when the market is rising so much faster than GDP, as happened in 2000?

Wendy (wishing you the best)

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Wendy, it seems that the stock market is reliably two steps forward, one step back. I was also 95% invested in 2008 when stocks got cut in half. Within a couple of years I was made whole again, and my investment has quadrupled since then. So a better question would be, where would I be if I had played it safer with a 50% or less allocation? I would have roughly half the retirement funds that I do have now. I am sure that a 20% haircut will happen, but that would still put me ahead of what I had on 1/1/17, and I would still have three times the funds compared with 2010. Thanks for asking and I wish you well also.
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Unless you are a real good market timer, it seems real money was lost today. Hmmmm...where are our cheerleaders?

PSU

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Is a cheerleader someone who claims that stock market never has a down day? I must have missed that post.

I would venture that stock market cheerleaders are capitalists who are dedicated to making money. That would make them a distinct minority here:

http://boards.fool.com/socialism-32952918.aspx

Capitalists are students of investor psychology, because for every buyer there is a seller. This is a great place to see how the sellers think.
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I learned about the 1929 crash from Grandma but witnessed the recessions of 1974-75, 1980-82, the 2000 stock bubble burst and the 2008 financial crisis personally. As a result, I never invest money in the stock market that I could conceivably need in the next 10 years.

Great advice Wendy. I first came to MF during the tech bubble. I remember what it was like around these boards during that time. Everyone was a Bernard Baruch. It was buy any dip. Not a lot of those people around anymore.

Short term the market is subject to psychology not any rules. The best piece of investing advice in the history of man is buy low and sell high. Which goes with the advice to buy when the herd is panicking and sell when euphoria takes over.

Today, Euphoria maxed out about 11:00am EST and fear took over about 1:00pm. This likely isn't the end of the bull, but it's close enough that I am conservative.
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That would depend. If the other 5% is $20,000,000 of Treasury paper then yeah, it's pretty safe.

If carbonbased has $400 million in assets, then she has nothing to worry about.

PSU
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Here's another chance to patiently explain to retail expert desertdave that point gains and percentage gains are two different things.

Here's another chance to patiently explain to carbonbased that Desert Dave only claims some competence in running a small (one to three store) retail opperation.

What's up with the sour grapes?

Was that remark directed at PSU's "That's a 4% rise in 12 days. There are a lot of single days with higher gains on a percentage basis."?

Must be 'cause *I* was touting the DOW 26000! +1000 IN WEEK as denoted by my subject line: DOW 26000! +1000 IN WEEK

Next up will be a post that the gains are artificial because the fed is boosting assets. So it's not a valid market. More sour grapes.

Not by me, I claim no expert or inner knowledge of how the FED works. It's all Greek to me.

Methinks you, carbonbased, have me, Desert Dave, mixed up with someone else.

Desert (dow's still up @26,115.65 tonight) Dave
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Actually, it is unrealized gains. It doesn't become real money until you sell.

True dat!

There were a lot of millionaires with unrealized gains in 1999 and 2007.

And Wall Street Crash of 1929 too!
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