Dow Gets A Holiday Bump

The Dow has bounced back!  Well…at least for now.

In the past year the Dow has lost 31.5 percent of its value.  In the past week it gained 9.12 percent.  At this pace, we could be back in positive territory before the new year.  Unfortunately, a pace like this would be impossible to sustain or justify. The week’s performance was a rally indeed, but far from a recovery.

According to CNBC, this has been the Dow’s best four days since 1932, it is too bad that the economy is drawing more comparisons to 1929.  The past week provided disappointing data on home prices (worst levels since 1990) and spending (worst levels since 9/11).  Factory orders also fell and unemployment is still high, painting a dismal picture all around.

Even still the Dow managed to gain a little under 3 percent today.  All but two of its components, Johnson & Johnson and Procter & Gamble, closed higher.  I find it quite interesting that in times of uncertainty, investors bid up the riskier components while punishing old reliables like J&J and P&G.  Although neither suffered major damage, in fact their losses were negligible, I just don’t see why they were in the red today.  

Anyway, I am glad to see the Dow in positive territory heading into the Thanksgiving holiday.  Speaking of which, I am so ready for a stock market vacation.  I don’t know about you, but I welcome a brief recess from the onslaught of economic recovery acronyms, seemingly daily emergence of bailout beggars and cranky congressmen!

Bring on the turkey, macaroni and cheese and apple pie and most importantly…

Give thanks!