Yeah, Yeah, Record Dow

The Milwaukee Journal Sentinel Editorial Board and my sworn nemesis Owen have both celebrated the fact that this week, the Dow Jones Industrial Average finally got back to where it was more than six-and-a-half years ago. Break out the noisemakers and pointy hats, you might say. But, once again, I'm going to let Billmon (whose day job is in the Markets) tell the story:

The Dow Jones Industrial Average hit a record high [Tuesday]: 11,727 -- four points higher than the previous record, set January 14, 2000. So if you invested $1,000 in the 30 companies in the Dow six years and almost nine months ago, you'd have $1000.34 today!

But, alas, if you invested that same amount in the S&P 500 Index (which in the winter of 2000 was bubbliciously full of tech stocks) you'd have only $910.56, and if you "invested" it in the companies in the Nasdaq Composite (the souffle of '90s equity indices) you'd have just $552.04.

Now, doesn't that make you feel better about the economy?

There is a bit of a feel-good element to the story of the Dow's having recovered its lost ground; but there is also little to suggest this is a turning point or that this is a leading indicator of a magical next few months where we all get a pony.

Hey, somebody has to be the downer at this party.