Dow 20K... Finally
As the velocity of earnings picked up last week during the first full week of Donald Trump's presidential term, the long awaited and much prognosticated Dow 20K finally happened. The party hats were broken out on the floor of the NYSE, and as that grouping of 30 stocks moved higher, so too did the S&P 500 and Nasdaq Composite Index.
On the one hand, we too share the cautious optimism of the growing market view that perhaps, finally, the economy will break out of its tepid malaise. On the other, however, we've often talked about the dangers of relying on group-think that can lead investors to be a tad too complacent.
Unlike the over-reliance by the Fed on the unemployment rate, when looking at the Dow20K as it's being called, it's also prudent to assess at the same time our preferred metric for the overall market, the…