Dow Jones Industrial Average Tops 21,000 for First Time

The video discusses the differences between the Dow and S&P indices, highlighting the S&P's reliability. It explores market sentiment, implementation risks, and the impact of Congress and the Fed on rate changes. The discussion covers earnings growth, potential irrational exuberance, and consumer behavior post-Brexit. It concludes with insights into equity market dynamics, the reflation story, and the potential impact of Fed rate hikes.

Why is the S&P index considered more reliable than the Dow Jones index?

• It is less influenced by company size and share prices.

• It includes more companies.

• It is updated more frequently.

• It has a longer history.

What is a key concern regarding the implementation of government policies and Federal Reserve actions?

• The lack of policy announcements.

• The absence of market reactions.

• The speed of policy implementation.

• The unpredictability of global markets.

What factor is contributing to the perceived earnings growth in the market?

• Increased consumer spending.

• Share buybacks.

• Higher interest rates.

• Government subsidies.

How have consumers in the US and UK responded post-Brexit?

• By borrowing to maintain their lifestyle.

• By investing more in stocks.

• By increasing their savings.

• By reducing their spending.

What historical trend is associated with Federal Reserve rate hikes?

• An increase in consumer confidence.

• A derating of the equity market.

• A decrease in market volatility.

• A boost in market growth.