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Dow Hits Record High, Readers Respond


  1. Most readers responded with skepticism to the rising Dow.
  2. The Dow's lofty height does not reflect the economic challenge and suffering which the majority of Americans are experiencing today. Good jobs have not returned in any meaningful way, productivity is at an all time high, and economic disparity is at an all time high. Throw in political gridlock, corruption and a general inability to promote any positive development in the nation and the Dow begins to look like a warning of social discord to come.
  3. Hell and no. The combination of unemployment, underemployment and inflation are better indicators of the actual story. Cutting costs (jobs, r&d) to boost profits and performance is not sustainable and could be detrimental in the long run since companies will have decreased the number of jobs and dollars in the economy, who will buy products? Then we head to deflation and the new highs will be a distant memory. But hey, NEW HIGHS!
  4. Some argued that the reason the Dow was so high is because stocks were the best option for investors.
  5. Where else are you going to put your money? Bonds and cash are yielding next to nothing, and there is a lot of uncertainty in Europe because of the possibility of the euro-zone breakup. American equities are the only game in town at the moment.
  6. Heck no! The ridiculously low interest rates have driven investors into stocks as the only way to get any kind of ROI. Stocks are high because there's nowhere else to go.
  7. A few readers saw the record-high Dow as a reason to be optimistic, and an indication of the overall health of the economy.
  8. Several people brought up the issue of inflation.
  9. Others equated investing in equities with old-fashioned gambling.
  10. The stock market is a high stakes poker game, not a real indicator of the economy. That being said, I see a lot of economic activity around me that indicates, despite the stupidity in Washington, that this economy is still recovering.
  11. It's a casino. This market is a zero sum game.
  12. The Dow's rapid rise inspired some comments about what it means for the middle class.
  13. Others disagreed, saying the stock market is an equal opportunity investment.
  14. On Twitter, one reader offered an astute analogy.