The Dow Hits a New Record. Yawn.

What craziness is going on in the stock

market! The Dow is hitting

new highs! The biggest-gaining Dow component is Citigroup,

a company which just announced its earnings were going to drop by 60% this quarter!


Lahart can’t make heads nor tails of this crazy volatility, and accompanies

his column

with the chart at left, showing the Dow zig-zagging crazily on its way to the

new highs above 14,000 that it’s hitting today.

To which all hysteria I just want to say: everybody, please, calm down. Here,

let me show you my own chart of exactly what the Dow has done this year. Citigroup

might be up a little bit today, but it’s still down substantially from where

it started the year (it’s at $47.95 now, after closing 2006 at $53.98). And

while stocks are certainly doing pretty well right now, movements of a couple

of hundred points in one day are really not very important when the absolute

level of the index is 14,000.


So take a step back, take a deep breath, and let the markets have fun with

their intraday gyrations. It’s really no big deal.

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