“I predict we’ll hit Dow 20,000 this year” – StockCats January, 2017
Fixation on Dow 20k…
One thing that’s been bugging me recently is the incessant “cheerleading” of Dow 20,000 on CNBC. I believe the unhealthy fixation on Dow 20k kicked off shortly after this interview.
Soon after they started running with “The March to Dow 20k” theme and it was literally relentless in the weeks leading up to the end of 2016. Dozens of times a day, day after day they discussed Dow 20k like it’s some sort of state of nirvana that the market is about to reach and once we’re there everything will be perfect – we’ll all be rich and live happily ever-after.
Sometime mid-December it finally dawned on me that they were beating me over the head with all this Dow 20k hype.
One user in my stream suggested the whole “almost there” charade was a ploy to sell more My Pillows – like a ball game going into overtime to fit in more ads.
And it wasn’t just CNBC… This was the Barron’s cover December 12th.
Note where it says “…any day now”
This basically sums up how I felt about Dow 20k by the end of 2016:
Perhaps by the time you read this post we’ll have already hit this “historical milestone”, but I just wanted to point out that it’s just a big round number in a price-weighted index and once we hit it, that doesn’t mean it will necessarily stay above it.
If Dow 20k was as big of a deal as the financial media seems to be making it out to be, I’d expect a ticker-tape parade down Wall Street.
It’s mostly just media hype and I still feel the same way about it as I did last year…
Goldman Sachs Dow Jones Industrial Average really the market anyway?
I have this strange feeling that we’re going to hit Dow 20k multiple times… both on the way up and on the way down.
I only hope the hype eventually dies down and we can focus on more important things… Like why most of the ads on CNBC remind me of “As Seen On TV” commercials.