Its only a number

The media is making a huge deal about the DOW crossing 10,000 yesterday.  What most have failed to mention is we are still well below the 14,000 high mark reached in mid 2007.  More importantly, the DOW has crossed 10,000 before, the first time was in March of 1999.  At that time, oil was $20 a barrel and gold was $200 an ounce.  Today oil is about $75 a barrel and gold is over $1,000 an ounce--the world has changed dramatically yet the media is still hung up on the DOW at 10,000.  As usual, the media needs something to get fired up about--even though it just isn't that big a deal.  Granted, I am happy the market is up--we all are.  But for many, threats of lay offs still prevail and the ranks of the unemployed continue to grow.  From an economic perspective, things have turned only marginally--but we're partying like its 1999!

I think, and I hate to think out loud in public, but anyway: I think the next big dilemma the market is going to have to deal with is the dollar.  I do not believe it can continue to be devalued--not when we are dependent on foreigners to buy our debt to fund our deficit.  Eventually, they will get annoyed in holding paper that is worth less every day. If the dollar starts to go up, what does that mean for commodities? international investments? and domestic investments?   Something to think about.