You guys all watch the news. Some watch the news diligently. Others simply scan over the news for anything relevant that affects them. Whichever category you fall under, chances are that you heard the news of the Dow Jones hitting 10,000.
What is the impact of the Dow Jones hitting 10,000 for 20 somethings?
Jeff Rose, Certified Financial Planner who blogs at Good Financial Cents had the following comment about the Dow Jones hitting 10,000:
On the surface this means absolutely nothing. More of an emotional thing. It shows that the market can and will recover.
It’s the first time the Dow Jones closed over 10,000 in over a year. If you guys remember correctly, that was also the same time period where “economic experts” were quick to drop the term depression. At the time of this posting most financial experts seem to be excited about this positive news. Who knows what will happen today? Who knows how the rest of the year ago? Will Dow Jones highs and lows continue to cause economic excitement or crisis?
CNN Money commented:
While 10,000 is not a significant milestone on a technical basis, it’s meaningful on a psychological level, analysts say. It could either user in more buyers or give investors who think the rally has been too much too much, too soon a reason to retreat.
ABC News stated the following:
It is a stunning comeback after a dismal year — and set off a celebration on the market floor. But workers and homeowners aren’t celebrating. The national unemployment level is still at nearly 10 percent and there were a record number of foreclosures last quarter.
CNN Money is pretty much all over the place. ABC admits that it’s great news for the investors, but what about the people sitting at home without a job?
No matter how high the Dow Jones Industrial Average goes, do not under any circumstances take it as a sign to become a day trader. Keep on doing what you’ve been doing for the last few months. If you’re in school then keep your grades up while learning your stuff. If you’re in the workforce then focus on moving up or enjoying life more. If you’re unemployed the network your ass off.
On the other hand, no matter how low the Dow Jones may go, it doesn’t mean that it will never bounce back up. If you have your money invested in companies with strong management then don’t let the Dow Jones affect your investment plans.
