Best July Gain (8.6%) for DJIA Since 1989
NEW YORK (AP) -- New hope for the economy just gave the stock market its best July in 20 years. The Dow surged 725 points or 8.6% for the month, with most of the gains arriving in bursts in the final 15 days. The extraordinary run shaped July into the best month for the blue chips since October 2002 and the best July since 1989 (see chart above). The Dow has risen four of the past five months.
3 Comments:
We, also, had a very similar "July" in 1929. Oops.
There is another unfortunate similarity with 1929 - Very High Gasoline Prices on the horizon.
Sometimes I worry that the "Stock" Market doesn't discount gasoline prices very well. I'm afraid that might be the case this time.
It seems to me we are still in a world of hurt with the debt, the proposed nationalization of the medical field (I refuse to call this attempt health care reform), the cap and tax mania and the associated federal spending and taxing associated with these efforts. Couple the two domestic issues with our ineffectiveness with Iran, N. Korea and outright duplicity with Eastern European allies and Israel we have, in my view, a recipe for failure.
At the same time, I guess I am still somewhat optimistic since I have moved more of my savings into equities. Fingers are crossed for sure though.
Sucker's rally.
It's a long, long way to Tipperary. It's even longer for the DJIA to get back to 14000. Nearly every stock in the DJIA is overvalued by fundamental analysis. This is nothing but a search for yield in a regime of low interest rates, exactly what got us where we are. When production tanks later this year, we'll be back at 8000 or less and you'll be searching for more corners to turn.
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