DOW Hits Major Mark for First Time in History

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The Dow Jones Industrial Average blew through the 25,000 point mark for the first time in its 121-year history in early trading on Thursday.

If the Dow stays above 25,000 at closing, it will mark the shortest stretch between 1,000 point milestones ever, at just 23 days, according to Fox Business Network.

The market is being bolstered by early jobs numbers released by the payroll company ADP showing the economy added 250,000 jobs in December.

CNN Money reported, “The U.S. economy is very healthy, especially compared with the slow recovery from the Great Recession. Unemployment hasn’t been this low in 17 years. Economic growth is the best in three years. Equally important, most major world economies are growing at the same time for the first time in several years.”

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“Thanks to those economic gains, corporate profits have never been higher. Companies are sitting on record amounts of cash, a chunk of which is being returned to shareholders. That makes stocks more attractive,” the news outlet added.

“Unlike the bull market that ended in 2000, this one has earnings behind it,” said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, in reference to the so-called dot-com bubble that was built on illusory profits. “The fundamentals are good. The economy is strong.”

The stock market run began the day after Trump was elected in November 2016, when the Dow rose 250 points to hit a record high of 18,589.

Throughout 2017, the Dow broke through the 19,000, 20,000, 21,000, 22,000, 23,000, 24,000 marks for the first time in its history. That represents a 36 percent rise in value, or over $5.5 trillion.

With the passage of the Republican tax reform bill last month, market watchers anticipate the Dow will rise even higher.

“I expect this stock market to continue rising for as far as the eye can see. So I am very bullish,” former Reagan top economic adviser Art Laffer told Fox News last month.

FNC host Bill Hemmer followed up wondering, given how much the market has already risen, “How do you find more room to run?”

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The Dow in August 1982 was 777 that was its low just before the tax cuts (passed under Reagan in 1981) took effect,” Laffer said. “By the end of Reagan’s term, I don’t know what it was three-and-a-half (times)…It was way, way up. So we have lots and lots of room.”

The DJIA was 2,239 the day Reagan left office in Jan. 1989, or nearly a three times rise in value.

Laffer believes the market could go up to 30,000 under Trump.

“The Dow hasn’t doubled since Trump has been in office,” Laffer stated. “If it went up threefold, it would be more like happened with Reagan. It’s not even close to that growth.”

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Randy DeSoto has written more than 1,000 articles for The Western Journal since he joined the company in 2015. He is a graduate of West Point and Regent University School of Law. He is the author of the book "We Hold These Truths" and screenwriter of the political documentary "I Want Your Money."
Randy DeSoto is the senior staff writer for The Western Journal. He wrote and was the assistant producer of the documentary film "I Want Your Money" about the perils of Big Government, comparing the presidencies of Ronald Reagan and Barack Obama. Randy is the author of the book "We Hold These Truths," which addresses how leaders have appealed to beliefs found in the Declaration of Independence at defining moments in our nation's history. He has been published in several political sites and newspapers.

Randy graduated from the United States Military Academy at West Point with a BS in political science and Regent University School of Law with a juris doctorate.
Birthplace
Harrisburg, Pennsylvania
Nationality
American
Honors/Awards
Graduated dean's list from West Point
Education
United States Military Academy at West Point, Regent University School of Law
Books Written
We Hold These Truths
Professional Memberships
Virginia and Pennsylvania state bars
Location
Phoenix, Arizona
Languages Spoken
English
Topics of Expertise
Politics, Entertainment, Faith




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