Are the record DJIA highs due to President Clinton's actions, or Bush/Cheney causing high gas prices?

Answer 1

Neither. But the DJIA is not the best indicator as it holds 30 blue chip stocks and doesn't measure the growth of technology (goto the Nasdaq for this) or small/mid caps, etc.

The DJIA right now is high because earnings are way up. Some of these earnings from consumers redistributing income that went to oil and gas prices now into consumer goods. (think Best Buy or Apple).

Secondly, after the 9/11 disaster, many investors have sat on the sidelines playing with safe investments such as bonds and low risk funds. However, there has been a recent surge of this cash into the relatively safe blue chips in the Dow.

Thirdly, commodity trading was hot, now its cooling. Commodity traders are transitioning there gold investments into funds and stocks.

Lastly, mutual funds had recently more "cash drag" (cash in tthe fund opposed to equities) and this is pushing the Dow up as well.

This stuff goes in waves and Bush/Clinton do not have a huge effect on it.

At least these are my opinions.

Answer 2

Neither

It is due to overvaluation but not of the extreme sort that preceded the internet bubble. The DJIA is not a good indicator of the stock market, it is simply a basket of 30 blue-chip, large-cap stacks. The price/earnings ratio of the Dow is slightly above 23 right now. It is generally at around 18. I personally believe that the Dow is up on speculation and I will probably short it shortly.

The S&P 500 better represents the market. It has not yet reached its pre-implosion high from 2000.

Answer 3

people in simple terms can not answer the question being asked, can they? besides right here is my take: i do no longer unavoidably have self belief Bush is inflicting it, yet he's on no account assisting. by way of fact of his singular concentration on Iraq and Saddam particularly, he has neglected each little thing else. on the beginning up of his adminstration, he pushed aside the communicate of any conservation of gas utilization. Now while the area consists of bear, he's all approximately conservation. Invading Iraq is the main mistake concerning to distant places affairs an US president can ever made. Now Iraq is a hopeless mess. The hostilities between Shi'tes and Sunnis are on no account greater severe. center East is on the factor of all out community conflict on an identical time as Bush continues to be refusing all out diplomatic efforts ( with concerning to Iran, wager what, US had to assist Iran to construct nuclear flowers a pair many years returned, notwithstanding it did no longer pan out due of loss of political will, the ironies in simple terms on no account ends). Bush won't be inflicting oil costs to run severe, yet all of what he does seem to make the project worse. The gas value will proceed to flow severe till it quite is severe adequate for individuals to alter their using behavior. like it became pronounced, it quite is all approximately grant and demand. XR

Answer 4

"CHEVIC !" knows nothing. The President has nothing to do with fluctuations in the market. It has been high under Clinton, and Bush. What's causing trouble in other ways is the MASSIVE National debt our current president is incurring. We now have the greatest deficit the world has ever known, thanks to Bush's plan to destroy the middle class, and America as well. This burden is now the responsibility of the U.S. taxpayers, except the rich, and will be for eons. All because of this administration.

Answer 5

The folks that say neither are correct. Good to see some people know something about the market and economics. The Dow Jones is not a good indicator for how the economy is doing, but it is one of many indicators. I can't believe there are still people that think that supply-side economics works well for all people, when it has failed miserably twice - espcially when you have to borrow from China to be able to even do it.

Answer 6

Neither. The highs are due to the belief that the interest rate raising has come to an end and the fed doesn't appear to have overdone it.

Blue chips have been depressed for far, far too long.

Answer 7

Hurricane Katrina

Answer 8

They are due to a booming economy despite high oil prices, the tax cuts have alot to do with it. Clinton has nothing to do with it.

Answer 9

Neither, Bush causing low taxes...

Answer 10

they are a direct result of clintons INACTION fighting the war of terror when he could instead of nailing interns on the oval office floor so we have to fight them now with inflated dollars spent on combat.