Dow Breaks 10,000: Don’t Get Caught Up in “Euphoria”, Mish Warns

Just a little back up for the last post where I issued the warning about the stock market.-Sean

The Dow Jones Industrial Average closed above 10,000 today for the first time in a year, and more than a decade after first breaking the mark. Since hitting lows in March, the Dow is up an astounding 50%, while the S&P 500 has gained 60%.

Before you get your broker on the phone or start trading that dormant online brokerage account, take heed of this warning from Mike “Mish” Shedlock, the blogger behind MISH’S Global Economic Trend Analysis: “Five years from now, I think its quite likely the Dow is not going to be much more than 10,000,” he says.

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Why so negative?

“We’ve still not solved any of those structural problems” Buy Xenical cheap in the housing, banking and debt markets, that caused last year’s crisis, he claims.

Shedlock’s advice: ignore the euphoria, and “take some chips off the table.  Now’s just not a good time to be invested.”

Shedlock, also an investment advisor representative for SitkaPacific Capital Management, thinks investors are better positioned in gold and cash.