New Fox Index captures movement into stock market “outer space” first reached in May 2013, the escape velocity attained by soaring past old-time market theoretical limits of a Dow of 15,000, an S&P 500 of 1,600, and a NASDAQ of 3,500, for a total of 20,100. We are now shooting farther into deep space, way out at +4,771 (see inset).
According to “MarketWatch’s” David Weidner,
it’s been a good year. . .the S&P 500 Index has risen 12%. The Dow Jones Industrial Average could finish up close to 8% for the same period, and the Nasdaq should end the year with roughly a 14% return. Considering the past two years of gains, 2014’s run is even more remarkable. In the past five years, the S&P 500 is up 87%, the Dow, 73%, the Nasdaq, 115%.Weidner, however, reminds us that
median household net worth [is] $81,200, a level that’s actually fallen 2% since 2010. This year household debt has risen between 2.3% and 3.4% each quarter, the most since 2007. . . The current average debt load for the U.S. household is $203,067, including credit cards (up 2.2% in the past 12 months), mortgages and student loans[, pointing] to a stagnation for most Americans. . . [T]he labor-participation rate remains 62.8%, the lowest since 1978. And among the working-age population, it’s just 59.2%. Wages, meanwhile, have risen 2.1% during the past 12 months, but that's just slightly above the 1.7% inflation rate during the same period.Weren’t the “Roaring ‘20s” about an economy marked by technological progress, rampant inequality, a bubble stock market, and some basic economic weakness at home (then in agriculture, today in manufacturing), against a backdrop of unfixed trade issues and rising unrest abroad?
“Everyone's Looking Up, but Should Be Looking Down”