Saturday, October 9, 2010

Traders Say Dow Topping 11,000 a Meaningless Illusion

The 11,000 marker matters to the White House only,” said Tim Seymour, hedge fund manager and founder of “No one else even cares about the Dow as a reference point for markets.”
11006.48     57.90  (+0.53%%)

The Dow average topped 11,000 after a weaker-than-expected jobs report caused investors to increase their bets that the Federal Reserve will restart quantitative easing that could keep interest rates low and lift asset prices. The Dow at 11,000 is not a bad headline for President Obama to have at the top of the fold in America’s morning newspapers tomorrow, instead of the longest stretch of unemployment above 9.5 percent (14 months) a new record.
“It’s great at creating an illusion of improvement in the economy, but it’s not keeping up with the rise in market inflation, aka commodities,” said Peter Boockvar, chief equity strategist for Miller Tabak. “Thus, everyone knows the Fed is single handedly juicing asset prices.”
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