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Bulls vs. Bears – The Sequel

Earlier this week I asked rhetorically if it was ok to be an optimist.  Here is an interesting chart from the great people at Chart of the Day, showing the inflation-adjusted Dow Jones Industrial Average since 1900.  This is interesting because the DJIE is testing post-financial-crisis peaks, but is nowhere near the “resistance” line suggested by previous peaks.  It is 25% lower than the 1999 peak (we’re not talking NASDAQ, we’re talking DJIE).  This, combined with a relatively modest P/E (price to earnings ratio) of 18, and reports that election results are already built in to the recent rally, suggests that there is still upside potential.

Our clients are hiring, and positioning for a good 2011, so we remain optimistic.  Hope you are too!