Main Street USA

The flag (Dow 10,000) has been captured. The march to the top has been strong, consistent, and straight up. Or has it? Since September 16th (one month ago Friday), the Dow Jones Industrial Average has appreciated 204 points (as of close 10-16-09.) However, consider that during that same time frame, The Dow Jones Composite Average is up only 3.47 points, and the Dow Transportation Average is plus a mere 0.87. Therefore, the rise over the past month could be considered, at best, labored. Also during this past month, I’ve spent much time driving across the country, and speaking with citizens of our great nation. The disconnect between Wall Street, Congress, T.V. commentators, and the average citizen of Main Street, is miles wide. While the former contend that prosperity is right around the corner, the latter know that the corner is several blocks away. Unemployment, foreclosures, deficits, wars, and most important, lies, all add up to immeasurable difficulties, not only in the short term, but for several years ahead. From the blue collar worker to the corporate retiree, from the unemployed mom to the furloughed line worker, all are worried, and all feel threatened.

The stock market is always a reflection of the economy. If Wall Street, Congress, and the T.V. commentators are correct, and prosperity is just around the corner, then Dow 10,000 will be a springboard to much higher levels, and the past month will only have been a resting spot. However, if Main Street is correct, and prosperity is a wishful thought, then the past month may be the beginning of the end for the stock market. Only time will tell.

After travelling 2,000 miles across the country, my money is on Main St. They know what the truth is.

Till next time,

Bill


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