Milestones

Schlindwein AssociatesInvesting, Market Observations

Financial markets witnessed another milestone this past week as the Dow Jones Industrial Average (“DJIA”) crossed 50,000 for the first time in the DJIA’s 129-year history. Reaching the 50,000 price-level is equally rare among individual stocks. Of the 19,453 common stocks currently trading on U.S. markets, only 8 have a price of 50,000 or more. Once reached, some milestones never are seen again from either favorable or unfavorable outcomes. Milestone values for market indexes likely have good odds of being surpassed given the very nature of indexes and their construction itself. For individual stocks, surpassing prior milestones likely requires sustained improvement in such measures as growth and productivity. Market milestones certainly are to be assessed for how they were achieved and the implications for market direction yet ahead.

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