Wow. The Dow is approaching 14000 for the first time since 2007. This, in spite of the fact that taxes on the top 1% went up for the first time in over a decade.
Seems Republicans were wrong on this too.
Last week the broad Standard & Poor’s 500 index closed above 1,500 for the first time in five years. This week the Dow Jones industrial average has been flirting with 14,000, a level it hasn’t seen since October 2007.
In early trading Tuesday, the Dow added 22 points, or 0.2%, to 13,905.
Stocks are a bit pricey relative to their earnings, but are nowhere near the overheated levels they’ve seen before, said Robert Shiller, a famed Yale University economist who identified the stock market and housing bubbles of the last decade.
Shiller, who may be best known for a widely reported index tracking U.S. house prices bearing his name, also created an index to track whether stocks were cheap or overpriced.
His CAPE index — which stands for cyclically adjusted price-to-earnings ratio — factors in 10 years’ worth of earnings. He has collected data stretching back to 1871.
Taxes were barely raised on the rich. I wonder what would happen if they paid their fair share.