Posted By RichC on February 21, 2012
I watched the Dow break the 13000 mark a couple of times today, but unfortunately for bulls, it didn’t hold; the Dow closed up just .13% at 12966. Looking back a few years, the Dow last traded at the 13000 level in May 2008 and was heading down from its historic high of 14198 in October 2007. I’m not sure we’re out of the woods just yet?
The real question is whether the financial markets will continue their rise even as tension with Iran push oil higher. Today oil closed over $106/barrel as most speculators are listening to the sabers rattle. This above $100/barrel oil has consumers funneling their dollars into their fuel tanks rather than helping the economy. We’re already tenuous as for as a recovery goes … higher transportation and shipping isn’t going to help. I can’t imagine what a new war or Israeli bombing of Iran would do?