December 29, 2014
The Dow has hit 18,000 for the first time in history! This is the second 1,000 point milestone for the index for the 2014 calendar year.
A timely article shows the Dow's record 1,000 point highs over time to chart the significance of this new record.
| Dow Jones Industrial Average's 1,000-point milestones | ||
| Trading sessions between 1,000-point milestones | Dow milestones | Date of first close above each milestone |
| 24 | 11,000 | 5/3/1999 |
| 59 | 14,000 | 7/19/2007 |
| 85 | 7,000 | 2/13/1997 |
| 105 | 8,000 | 7/16/1997 |
| 120 | 18,000 | 12/23/2014 |
| 127 | 13,000 | 4/25/2007 |
| 139 | 16,000 | 11/21/2013 |
| 153 | 17,000 | 7/3/2014 |
| 182 | 9,000 | 4/6/1998 |
| 189 | 5,000 | 11/21/1995 |
| 226 | 6,000 | 10/14/1996 |
| 246 | 10,000 | 3/29/1999 |
| 975 | 4,000 | 2/23/1995 |
| 1,080 | 3,000 | 4/17/1991 |
| 1,460 | 15,000 | 5/7/2013 |
| 1,879 | 12,000 | 10/19/2006 |
| 3,573 | 2,000 | 1/8/1987 |
| 21,652 | 1,000 | 11/14/1972 |
A key observation from this chart shows that the fist milestone at 1,000 took 21,652 sessions to achieve in 1972 versus today's 18,000 milestone which only took 120 sessions to achieve-a fraction of the time!
What this means for investors is that there are positive trends happening in leading companies at the close of the year specifically from Visa, Goldman Sachs, and IBM.
A few key takeaways from this experience
- Be an investor. If you are in cash or money markets you are missing out on the potential for tremendous growth and returns.
- Invest in the U.S. We are positioned the best for growth, innovation, and long term success compared to Europe and China.
- Stay in high quality companies. Grounding your investments in high quality companies that pay dividends, have good cash flow, and are well managed more often than not provide the base for a strong portfolio-one you will be able to hold and benefit from over time.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).