The Dow Jones Industrial Average’s move to a new all-time high was a victory achieved with the defense spending most of the time on the field, fending off perilous threats while the offense scored just enough to win.
This isn’t meant to damn the rally with faint praise, to declare “sour grapes” or charge that there’s anything suspect about the long-tenured market barometer’s surmounting of its 2007 peak. Relative to corporate profits, the size of the U.S. economy or the valuation of corporate debt, the Dow’s push to a fresh, if marginal, high, is right in line with historical norms.
Rather, crediting the defense is to recognize that, in recent months, the stock market has impressively found a way to withstand some political pseudo-crises, unceasing global-growth fears and some financial-crisis aftershocks.
Dow keeps marching on
Since the market jetted higher to start the year and began to look overbought and over-loved – prompting widespread calls (by this column and elsewhere) for aRead More »from Dow’s New High a Gently Cheered Win for the Defense