Today one of the oldest stock indices in the world, made history. The Dow Jones Industrial Average stands on a record high after breaking the 30.000 point barrier. Founded in 1896 by Charles Dow, the Index summarizes the 30 most important large caps in America. Historically it’s growth has been remarkable, with a history of doubling roughly every eight years.
While many Investors rejoice at price developments, sceptics question the sustainability of the price in relation to the COVID impaired economy. Drivers behind the strong performance have included vaccine developments, fiscal stimulus, and the Federal Reserve’s monetary policy including trillion dollar bond purchase programs and historically low interest rates.
With a Biden presidency approaching, investors have also turned their attention to the economic implications of a change in administrations. So far markets have reacted positively, getting a boost after Janet Yellen was announced to be the pick for Treasury Secretary, a far more moderate choice than some of the other names which had been floated, such as Elizabeth Warren.