TLT - Dow Knocking On The Door Of 40000

2024-04-02 05:30:00 ET

Summary

• The stock market rang the doorbell of the New Year with a bang during the 1st quarter.
• Despite the magnitude and duration of the bull market, there is still a lot of angst and anxiety over the upcoming election.
• If economic data slows significantly or the country goes into a recession, then the probability of sooner and/or more Fed interest rate cuts will increase.

The stock market rang the doorbell of the New Year with a bang during the 1st quarter. The S&P 500 index built on last year's +24% gain with another +10% advance during the first three months of the year. And as a result of these increases, the Dow Jones Industrial Average index is knocking on the door of the 40,000 milestone - more specifically, the Dow closed the month at 39,807 (see chart below). To put this into context, when I was born more than 50 years ago, the Dow was valued at less than 1,000 - not a bad run. This is proof positive of what Einstein called the 8th Wonder of the World, "compounding". At Sidoxia Capital Management , we view investing as a marathon, not a sprint. You cannot realize the benefits of compounding without having a long-term time horizon. The sooner you start saving and the more you save, the faster and larger your retirement nest egg will grow....

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