The Dow Passes 14000 and Falls Below the Next Day

The comparison is so often used that it has become incredibly trite, but whoever first remarked that the stock market is like a roller coaster really hit on something. This week’s activity on Wall Street has emphasized the thrill ride nature of the market.

On Thursday, the Dow Jones Industrial Average closed past the 14,000 mark for the first time in history; it has been less than three months since the Dow first crossed 13,000 points, so investors were really excited to see the surge this week which pushed the index past its next milestone.

But on the next day, the Dow Jones fell 149.33 points at the news of some disappointing second-quarter numbers, wiping out the advances of the entire week. The S&P 500 and the Nasdaq composite also suffered losses.

For me, this just reaffirms my belief that casual investors should just focus on the long-term trends because watching the short-term ups and downs can drive a person crazy.

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1 Comment »

  1. […] After hitting an all-time high last week, the Dow Jones industrial average has had a rough run this week, losing more than 500 points in the past two days. […]

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