Why 20k?

28 December 2016 By Tom Buerkle

The post-election rally has pushed the storied average to the verge of a new milestone. Though not artificial, it’s virtually meaningless. Other things – PE ratios, growth rates, fiscal spending and tax rates – will determine whether the aging bull market can flex new muscles.

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The Dow Jones Industrial Average opened more than 18 points higher at 19,964.31 on Dec. 28, just shy of the record-high close of 19,974.62 set eight days earlier. The market benchmark has risen 8.9 percent since Donald Trump won the U.S. presidential election last month.

Since bottoming in March 2009 following the global financial crisis, the Dow has tripled without suffering a 20 percent setback, considered the measure of a bear market. The bull market for U.S. stocks is now the second longest in history, surpassed only by the 12-year run that ended with the tech crash in 2000.

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