I've endeavored over the last several years to get people to invest in great American companies, even in the face of policies that have resulted in the worst post-recession recovery ever.
My rationale for this hasn't changed, in fact it's even stronger - there is a lot of prosperity in the world that's creating opportunities that American companies with their unique skills and great workforce are benefiting from. We are so myopically focused on a limited vision of the world. The Message of the Market
There is a disconnect between the stock market and several popular notions.
The Dow Jones Industrial Average doesn't reflect or add credence to White House economic policies.
The Dow Jones Industrial Average isn't the best barometer of America's economy.
The market isn't frothy, it's not the talk around water coolers and nobody thinks they can stop working tomorrow to day-trade themselves into ownership of their own personal island in the Caribbean. It's not the talk of Main Street and the new all-time high on the Dow didn't even make it on the cover of two New York daily newspapers - the Post and Daily News.
In fact, the cover of the Post felt the story of UV rays from certain nail polish and sealing techniques was more important and the paper couldn't resist a good pun on Hugo Chavez who passed away this week.
The NY Daily News had a leggy Martha Stewart on their cover and a story of "years of lurid team hazing at elite city HS." There was a big ad at the bottom of the front page touting the Power Ball jackpot now $123.0 million urging readers to "play now."
Impact of Global Economy on US Profits
The Dow and many companies not in the Dow are benefiting from the global economy with growth coming from places like Luanda, Baku, and Shenzhen. Take a look at the four most influential components of the Dow and where the growth and money came from in the fourth quarter of last year.
International Business Machines - IBM
Caterpillar - CAT
3M - MMM
Chevron - CVX
I've spend the last two days debating the legitimacy of the Dow reaching all-time highs, mostly with people that have been bears or out of the market. It's extraordinarily frustrating to go through this and now wait for some inevitable correction for those wrong for years to say "told you so."