Dow Hits New High

It probably came much earlier than everybody had thought it would take, but the Dow hit the all-time high today! Last time it was this high was in early 2000, the peak of dot-com mania.

The difference between now and than? Timothy Vick, senior portfolio manager at Sanibel Captiva Trust, has this to say:

The big difference is that stocks are cheaper than they were back in early 2000. Today, Vick says, roughly half the stocks in the Standard & Poor's 500 are trading at less than 15 times their expected 2007 earnings. In 2000, half were trading at more than 30 times earnings. Those positives aside, James Stack, president of InvesTech Research, warns: "There's an old adage on Wall Street, 'Every new high is bullish except the final one.' "

Personally I believe there is further gain ahead. The biggest driver remains the same: the globalization! The Dow components are made of the biggest companies in US. They are all global companies and tend to benefit much more in the globalization than the smaller companies.

S&P 500 and Nasdaq are still 12.7% and 55.6% below their all time highs, respectively.