Dow Crosses 14,000 – What does it mean for Me?

Jul 17, 2007: 5:38 PM CST

Tim Paradis wrote a clenching article posted on Yahoo Finance this afternoon in regards to the Dow Jones crossing 14,000 for the first time. Specifically, he ponders “What does this mean for the average investor?”

Here are a few quotes from the brief article:

“While it’s true that such round-number milestones often draw big headlines and prompt some investors sit up and take notice of the market’s gains, most investors would be wise to pay attention to the moves of broader indexes like the Standard & Poor’s 500 index.”

“It’s meaningless for the average investors, although it can be a headline grabber,” said Dean Junkans, chief investment officer at Wells Fargo Private Bank.

“…watching the odometer flip to reveal a fresh set of zeros can also presage a pullback if it prompts some investors to lock in some profits.”

“You could have those folks say ‘It’s time to create a little dry powder and take some chips off the table,'” Junkans said. “It’s sort of overdue for a correction,” he said of the stock market.

“It’s just another number. I think it gets blown out of proportion,” said Neil Hennessy, president and portfolio manager at Hennessy Funds.

“There’s no euphoria,” he said. “Most people are aren’t paying attention because they don’t believe it. People just look for the negative.”

Absolute food for thought.

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