Monday, August 3, 2009
Is the S&P 500 breaking 1000 really important?
What about the Nasdaq breaking 2000? Yawn. It is non-stories like these that make me shake my head. It almost makes me want to learn more about the weird, sad end to Michael Jackson's life than read about what a milestone this is. Is it psychologically important? I don't really know what that means. I suppose it means that people are very attached to round numbers and get happy when you pass a big one. These stories always include an optimistic quote from a fund manager or two. This is a great example of Mr. Market changing his mind. Why? I don't know. People will point to stronger growth overseas or a boost from the manufacturing sector, but no one really knows exactly why. They just know that the bulls won today. Don't believe the hype. Use days like these to exit positions you no longer like on more favorable terms.