What is becoming increasingly known as the "Obama stock market rally," the Dow Jones Industrial Average rose to its highest level ever. The Dow jumped 0.9 percent to 14,253.77 today at 4 p.m. in New York, climbing above the previous 14,164.53 record closing level it reached before the global financial crisis. It also eclipsed its previous intraday high of 14,198.1 from Oct. 11, 2007.
The reasons for the rise to these record levels. One answer won't suffice, but a number of factors have contributed. Housing has made a big comeback. Not only the number of sales have increased, but now there are signs that prices are also rising. Also, the employment picture has improved since 2009. The improvement has not been dramatic, but a slow, steady movement as private sector jobs have grown in each of the last 38 months.
Corporate profits are also showing an increase as corporate America is sitting on piles of cash. According to Bloomberg, the profits of Dow Jones stocks are projected to increase 9.2 percent this year and 9 percent next year. Profit from companies in the S&P 500 will exceed $120 a share by next year, double the level in 2008, according to Wall Street estimates. That’s the biggest increase since the 142 percent gain amid the rally in technology stocks from 1993 to 1999.
Politically, this economic upturn solidifies President Barack Obama's strength in dealing with the United States Congress in passing economic legislation and passing a budget that can be passed in both houses.
The economic upturn also continues to add to President Obama's legacy as one of the great Presidents in American history as he took a quickly depressing economy and turned it into a path of growth.
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John is the author of an award-winning book, the 2010 Winner of the USA National Best Book award for African American studies, published by The Elevator Group, Mr. and Mrs. Grassroots. Also available an eBook on Amazon. John is also a member of the Society of Midland Authors and is a book reviewer of political books for the New York Journal of Books . John has volunteered for many political campaigns.