November 25, 2013
By Peter Bower
Markets last week suffered a little bout of vertigo before pushing through 16000 on the Dow and 1800 on the S&P500.
It was a little hesitant, as no investor wanted to be the last to buy if the market turned down. However, good news from the real economy bucked up investor confidence and the barriers were pierced. This morning investor buying on the NASDAQ is pushing this index through 4000.
New highs in market indices are not barriers if they are supported by fundamentals.
When I got into this business almost 35 years ago, the Dow was trading between 800 and 1000.
The S&P500 was trading around 80. In the meantime there have been successions of new highs. Any barriers they posed were obviously temporary and often only psychological. We have made the statement that this market advance has been supported by improving fundamentals; that continues to be the case.
