‘Will this be it?’ we ask.
The previous best mark was 14164.53, achieved on October 9, 2007 – and then came the GFC. So, it is kind of a big deal for global markets.
The reason for that is that it is a psychological barrier, the overcoming of which may help us to move on from a dark period in financial history. To use an historical example, the Dow did not reach the 1929 highs seen before the Great Depression again until 1954.
Like it or not, these moments in time are like scars on our financial brains. They are used as bookends and reference points time and time again.
So, that’s why it’s a big deal.
In the near-term it does not mean we will see a 1000-point rally on the index. In the longer-term however, it will be a point that people point to – rightly or wrongly – as representing a shift or a movement away from a previous period.