By now you probably know the Dow Jones Industrial Average (DJIA) briefly eclipsed 13,000 yesterday…ever so briefly, before closing at 12966. The 13,000 mark is considered a key psychological point for the Index and a signal that may encourage investors to get back into the market. In an instant, people near and far shed their triskaidekaphobia, at least for a day.
While the market-savvy know about the intricacies of the Dow, not everyone is conversant with the lingo of financiers, investors, and market gurus. The shortened version of the explanation is that the DJIA is one of several indices created by Charles Dow, who was the WallStreet Journal editor, and co-founder of the Dow Jones & Company. The Index tracks the performance of 30 large, publicly-traded companies based in the
Yesterday we witnessed the highest level the Dow has reached during the tenure of President Barack Obama. The last time the Index closed higher was May 19, 2008. This is important for many reasons. One that will be highlighted frequently as we progress through the coming months is the debate on the economy by the principals aspiring to claim the highest elective office in the land, the Presidency.
Almost since the advent of Mr. Obama’s Presidency, critics, chief among them Republicans, have contended the President’s policies have been ill-suited to the economic challenges we face, and worse, ineffective. President Obama has countered for some time that the current state of the economy is substantially improved relative to when he took over, and he has a compelling case.
While we are not where we want or hoped to be, the fact is the contrast is stark. The month before Mr. Obama took office the
- Rescuing the banking industry (Those institutions recued have repaid their loans, including interest)
- The automotive bailout (General Motors and Chrysler have repaid their debt, and rebounded to become profitable enterprises again, joining Ford)
- Avoided national bankruptcy, despite opposition that tried to force the country over the precipice
- Oversaw the creation of 1,600,000 jobs net, in 2011, compared to 1,080,000 during the entire 8 years of the Bush Administration
- The current Unemployment Rate fell to 8.3%, lowest since February 2009
- Stabilization of mortgage delinquencies and foreclosures, both of which are trending downward
- Dow reaches 13,000, and closes at 12,966
Of course, these financial indicators must be added to President Obama’s Foreign Policy and War Zone portfolios, which include a significant disruption of the reigning global terrorist network, headlined by the assassination of Osama bin Laden, and the on-time terminationof the War in Iraq, respectively. The GOP continues to sort out its Nominee selection process; the next GOP Debatewill be tonight in Mesa, Arizona. This will be the last Debate before Super Tuesday(March 6, 2012).
There will surely be a spirited contest in the fall, once the GOP gets their man…or woman some might say, in the event Sarah Palin is drafted in a brokered Convention. Meanwhile, for all the energy invested in making sure that President Obama is a one term President, and in painting him as the scapegoat for every ill the country faces, he is quietly and increasingly adding a number of very potent arrows to his quiver. Indeed, he may remember well February 21, 2012, for it signaled..."The Rise of the Dow: When 13 is a Lucky Number!”
I’m done; holla back!
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