Stock Market Nears 11,000

For months now I have been listening to economic pundits (mostly appearing on NPR) that the US Stock Market would soon "flatten out" and that there was little or no chance that there was enough "momentum" to reach the 11,000 mark in 2006.

Well, today is only February 9th and the Stock Market reached a high of 10,940 before fading in the home stretch and closing up 25 points at 10, 883.

Should the market reach a closing of 11,000+ it will be very difficult for the Democrats to criticize the Bush economic policies. Tax revenues are up to near record levels. Democrats would say that this is "in spite of" the tax cuts. Bush supporters would say that this is "because of" the tax cuts.

Personally, I think that the Bush supporters sound more convincing on this particular point.

People do not invest in the Stock Market unless they have confidence that it will continue to rise or, at the very least, hold steady an provide a healthy dose of dividends each year.

After the 2001 market collapse, many folks (including myself) divested of at least some of their stocks and put more money in the bond market.

From the look of it I would guess that money is shifting back into stocks . . . and with enthusiasm.

The old saying is that insincere people do not "put their money where their mouth is." Today, there must have been a lot of sincere folks whose deeds matched their words and then some.