Transcript for Economic Recovery: Dow Jones Index 300 Points From All-Time High
We turn, now, to wall street's big role in the new year. The dow closed at its highest level since october 2007, before the economic collapse. The dow is now less than 300 points away from hitting an all-time high. The s&p 500, broader measure of stocks, ended the day above 1,500 for the first time since december 2007. What does this mean for you and your investments? Let's bring in michael santoli. Good morning, michael. What's behind this rally? And does it have legs? Four years we've been rising here. More than doubled in the stomach since 2009. What's going on is the economy has improved steadily enough for long enough, that it kind of feels that way to most people. And I think also these megathreats have receded a little bit. At one time or another, we were expecting europe to fall apart, china to fall into recession or the united states to fault on Those things have faded into the background. I do think there's a chance that, now, we're back to a normalcy situation in the market. You can roll along. But I think it's come a little bit far in a short period of time. Up more than 10% in ten weeks. It usually doesn't keep that pace up. For the first time in a long time, we're seeing the individual investor starting to invest their money. Mutual funds have had the best week they've had since 2000. What does it mean for the personal wealth in this country? If you've been in the rket, the market's done you a favor for doubling again since march 2009. Interest rates are so low, i have to at least try to participate. What you should keep in mind, this is not early in the run. When you've been rising, it means that a lot of the low-hanging fruit has been picked.Individual investors should probably participate if they've been totally out of the market, if they have a long-time horizon. But I do think it's going to all depend on whether the global economic growth story that people expect to happen does actually come through. We don't really know that. We won't know it for months. And also, what's happening in washington, if they'll have resolve there and resolution. Actly. One company that hasn't been participating. Apple stock, down 40% in the last four months. The biggest company in the world. Exxon overtook it again. Apple has had an amazing year. Went up 75% in its stock. Disillusionment with apple's ability to keep the growth up. When you get to that side, so difficult to grow fast enough to satisfy investors. And apple has failed so far. They're overearning because people have competitive products like the iphone. And nobody's really sure if they can stand head and shoulders above the competition for long. A lot of experts say don't bet against apple just yet. Michael, thanks so much for joining us.
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