The Dow Jones Industrial Average (DJIA) keeps setting new record highs. Does this mean the Managed Depression is over? The short answer is “yes”, but the long answer is “no”.
The case for a “yes” is that this is based on the solid progress that we have been waiting for, and it’s backed by some strong numbers. The “no” is that we’re still judging ourselves against either the depths of the worst part of the depression, or in the case of the DJIA a 6-year old record – it should be about 30% higher or more in that time. But what counts is that this is based on strong corporate profits at least as much as a lack of any other place to put money and the trends should continue – unless the Federal government does something stupid. Where do you want to put your money on that one?