The Dow set a record today. (Graph from The Telegraph UK.)
The Dow Jones Industrial Average hit a new record high today, Monday, going over 14,264.
The last record high was 14,198.10, set in October 2007, when investors were squarely focused on the Federal Reserve, which had cut rates for the first time in four years amid worries that the housing implosion would hit consumers and the broader economy.
Today, the Feds actions have juiced stocks and helped boost the economy. The record is based on expectations of continued Federal Reserve stimulus action.
Investors appear to have considered the fight over $85 billion in forced government spending cuts, but not to a negative degree. Reports are that The Obama administration has started making the cuts and that some federal workers are getting furlough notices.
The 116-year-old Dow index rose 118 points, and in the process of reaching the record today, completely erased all of the losses from the 2008 Crash.
That September 18th, 2008 downturn almost caused an economic recession. The Obama Adminstration managed to get an $800 billion stimulus package passed, and while it helped, it was not enough to pull the economy completely out of its unemployment troubles. Still, the stimulus did fuel economic growth, leading to a constant expansion that lasted until the winter of 2012.
Stay tuned.