Dow Passes 13,000

After a rocky start to the year, the Dow Jones Industrial Average has now passed the 13,000 benchmark:

The last few months have been a somewhat rocky ride for the Nasdaq too, but now the index is hitting something close to a five-year high:

I am reminded of what I said about GDP and the knock-on market effect back in November:

America needs to stop worrying about productivity, and start worrying about what to do with all the productivity when it comes about in the next three or so years, or it may find itself back in an enormous bubble. This is what happened in the late 1990's; productivity materialised, but was fed into productively non-existent assets, which killed the productivity cycle.

Either way, another bull market is coming.

Now, everyone's talking about that bubble. I've heard this from some respectable sources, but personally I don't buy into it: the dynamics of global risk appetite (i.e. extra liquid capital from different areas of the world lying around ready to be mopped up) mean this kind of analysis is premature. Rather, we're at the beginning of something.

Comments

[neil]

How are things going? Any chance of some more posts?