The Dow pushed past 9000 yesterday to close at an eight-month high. This was just two days after notching a seventh consecutive winning session for only the fourth time in the last 20 years. What does it all mean? Truly, I haven't the slightest clue. If I did, I'd find a way to market that kind of clairvoyance for a seven-figure salary on Wall Street and pool half my earnings into daily sports betting. Instead, as a mere blogger, all I have is analysis. So let's ask: Should investors prepare themselves for a 5-digit Dow?
Almost everybody I can find seems to say: Don't expect the rally to
continue in the short-term. Indeed today, the markets have taken a hit
with Microsoft announcing its second down quarter in a row. Here's
short survey of analysts'
"If you're long-term and looking for a time to enter the market, certainly the opportunities are very, very good right now. Provided you can accommodate some likely continued volatility, I think you'll do quite well in the long run." - Robert Zagunis, Jensen Investment Management
"The stock market
is proving again that its movements don't always make sense. On July 23
the Dow Jones industrial average bounced back above 9,000 for the first
time since January--on a day when Wall Street learned that more than
500,000 Americans filed for jobless claims last week." - Ben Steverman, BusinessWeek