DOW hits 20,000 for the first time ever

[brooklynite]

Source: CNBC

U.S. equities rose on Wednesday after a series of executive orders from President Donald Trump increased bullish sentiment on Wall Street.

"Traders have been waiting for more details on infrastructure spending and now they have it in a very clear format," said Naeem Aslam, chief market analyst at Think Markets. "There is nothing bigger than this."

On Tuesday, President Trump signed executive orders that will make it easier for TransCanada to build the Keystone XL pipeline and for Energy Transfer Partners to build the final uncompleted portion of the Dakota Access pipeline. The orders helped lift the materials sector to a 2.5 percent gain Tuesday.

"There's no question that some of the executive orders he's signed are good, especially deregulations," said Peter Cardillo, chief market economist at First Standard Financial. "Anything else should be seen as a question mark. We don't know what a wall on the Mexican border would mean for Nafta."

Read more: http://www.cnbc.com/2017/01/25/us-markets.html

[HopeAgain]

1. On our way to being a third world country

With two socioeconomic groupings... the rich and the exploited.

[underpants]

2. I'm getting out

It's just a free hindred bucks in my 401k but I smell a stink coming in a few months.

[DetlefK]

3. Step 1: Pump up the stock-market bubble with enthusiasm and hollow promises...

[erpowers]

4. Give Obama Credit

CNN was saying that the DOW has risen 1,667 points since Donald Trump was elected in November. Well, it has risen about 12,000 points since President Obama was elected 8 years ago. It is very likely that President Obama's actions are having more of an effect on the stock market than President Trump's. The market was on an up swing before Donald Trump won the election. News media people need to stop acting as if this continuation of the up swing is all because of Donald Trump's actions.

[wisteria]

5. What goes up will come down.

This all based on "promises"

[BumRushDaShow]

6. Overdue for a 10% (2000 point) correction.

[still_one]

7. The DOW is an overrated index. The S&P 500 is a far better one

[brooklynite]

8. Also at a new high...

[yellowcanine]

14. S&P actually up more (%) than Dow since Jan 1.

I don't understand any of it all that well but it appears that investors are moving out of bonds and into equities, possibly in anticipation of higher inflation rates if there is a lot of infrastructure spending while near full employment.

[still_one]

15. My point was it is a better index. DOW is price weighted, S&P is market cap weighted

[yellowcanine]

16. Well yes, and it is why Index Funds are based on the S&P.

Also, Dow is only 30 companies, S&P is 500.

Another way of saying it is that the Dow only measures price while the S&P measures value.

[still_one]

17. you expressed it better than I did

[IronLionZion]

9. it's a good time to trim

The Trump rally won't last long. They're going to take hundreds of billions out of our economy through large cuts in government. There will likely be trade wars limiting access to parts and materials for lots of stuff.

No matter what happens, there will be volatility in most sectors.

Many moderate and liberal economic analysis organizations are predicting low growth the next few years. Only the conservative orgs expect growth after being in denial the last 8 years.

India expected growth after electing a RW leader and see how it worked out for them. Look to Kansas, Wisconsin, Michigan, North Dakota, or Texas for domestic examples of republicanism in action.

[Kablooie]

10. Sounds a lot like 1929 to me.

[stonecutter357]

11. it's a sell of...

[Yavin4]

12. Sell into the exuberance

Buy into the misery.

[kydo]

13. What goes up will come down. The higher it goes the lower it will fall err crash

This is not going to end well.

I know all those wall street investor rich types think this is awesome. So did the same type of people back in 1929. That didn't turn out to well. The only difference is that it was after the 1929 crash that world was given hitler. We are got the new hitler before the crash. Alternative reality I suppose. I prefer the real stuff not this alternative crap. Its so weird and fake.

[EarthFirst]

18. Anyone else feel there were hands at play here?

That 20K was pushed off until the following week for the optics?

Have I gotten so cynical to believe this to be within the realm of possibility?

Sigh.

[bleedinglib]

19. I can't get excited

as a consumer having to pay more for everyday products. The stock market is profit for someone, but it means someone hast to pay for the profits taken by investors !! Has anyone noticed how much prices are rising with no apparent reason ?? Gas prices will be $ 4:00 + a gallon by next year !!!

[cbdo2007]

20. Thanks Obama!! My 401K is looking great for the time being.

[tammywammy]

21. Trump will invest more credit for Dow @ 20k

Than anyone will give Obama for 7,900 to 19,600

[Lokilooney]

22. The stocks go up where they come down...

If investing for the future:

1. Invest in Index funds. (they beat actively managed about 2 out of 3 times)

2. Keep putting money in it through highs and lows and ignore headlines like this.

3. Profit.

Pro tip, don't listen to the underpants gnomes.

[camelfan]

23. When the recovery under Clinton began...

...the Republicans called it a "false recovery." When it became the best recovery ever, they said it started under Ronald Reagan. When Obama took office, they said that the fact that the market was down showed no confidence in Obama. The fact that it's up now is only because Wall Street is rubbing its hands together in glee at the thought of all the tax breaks and deregulation coming its way. This is going to be a catastrophe.

And index funds? Yes! The guru of index funds is John Bogle. Seek out his advice. I also recommend the excellent PBS Frontline episode "The Retirement Gamble."

Adding a link to the Frontline ep: http://www.pbs.org/video/2365000843/

[Generator]

24. Money people love fascists

But hey Donny boy will fuck that too. Just you wait. And my life will be screwed too because of retirement.

[onenote]

25. I would hope any DUer who has invested in the stock market would get expert advice

before deciding on their investment strategy and would not look to fellow DUers. Stock market advice given by posters on this site has a long history of being wildly wrong. Here's just one recent example.
http://www.democraticunderground.com/10028408522

[Blanks]

26. They'll start talking about investing Social Security in the stock market soon...

better returns and all that.

Look for Ryan to be up on the TV here in the following weeks and months. Of course it'll crash in October. That's when people start looking to the long winter ahead and realize that its all just a Ponzi scheme.

Hopefully they won't have made any progress on the Social Security scam before the crash.

[JenniferJuniper]

27. The bigger they are they harder they fall,

one and all.