Posted By RichC on September 28, 2006
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The chief measuring stick for the stock market, the Dow Jones Industrials, closed at 11,718.45 and briefly traded at record levels today. Shortly after the 9:30 market open, the index was trading above its record high close of 11,722.98 set back on January 14th, 2000. For some this milestone seems to pale in comparison to the crazy euphoria day after day record highs of the 90’s stock market boom; to others today’s high was a thankful relief, a relief to have weathered terrorism, corporate scandals and a recession. Many believe we are now seeing the effects of better management, tax relief and a carefully managed federal reserve — all crucial for steady growth. Although the market has been rising since its low in 2002, it has not been without its doubters. The years end and possible political change could prove to be the ‘pin’ if our recent high is indeed a ‘bubble?’ As we approach that ‘investor dreaded’ month of October, some are preparing their portfolios for a possible correction while others continue to bully the market forward working to make up for the weaker investment returns that were notable in the first half of this decade. I have to admit, from an investors standpoint, the recent trading above 11,000 and the uncertainly of this November’s mid-term election sends a chill down my spine.