When was dow jones at 14000

The question of whether the current market is in a bubble phase - as Springer suggests - is likely one that will be answered only in retrospect. But there is little debate over whether the Fed has played an integral role in pumping it higher. Read More : Market Savior? It is at those meetings, held eight times a year, where the Fed decides how it will target interest rates. And for the past four years, it also has been the scene for the FOMC to decide how much money it will create to inject into the economy.

Indeed, investors have relied on the Fed to respond to bearish economic data with three phases of asset purchases, or quantitative easing. So good economic news sometimes is looked on unfavorably by a market that both has come to rely on its central bank backstop and fears that any upturn in the data will deter the Fed from more easing.

But the public usually follows the Dow, which is comprised of just 30 stocks but is considered a barometer for how bluechip companies are performing. However, most of the market's rise in general has been due to company share buybacks rather than average investors jumping back in. According to the New York Times, part of that action is due to corporations plowing profits into share repurchases instead of into research and product development, or into increasing production and expansion.

Although share buybacks drive up the price of stock, they do little or nothing to better the company. If you are looking to the stock market as an indication that the economy is going to start zinging along or as an excuse to make that next big splurge, you might want to reconsider. As the Trumpet has said, it is really a time to tighten your seatbelt ; rougher economic roads are ahead.

Dow Jones Hits 14,—New High? Getty Images. And of course, September When all's said and done, Dow 14, is just a number.

You can read into this number anything you like. You can even choose to buy stocks because you like the number. But the number itself doesn't guarantee you any sort of success whatsoever. Motley Fool contributor Rich Smith holds no position in any company mentioned. Happening Now. Rich Smith. Market wavering. More From AOL. Are you a homeowner? Refinance rates at 1. Betting your home against Wall Street Losing the American dream. More Markets Why it's time for investors to go on defense.

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