The Dow Jones Industrial Average peaked over 20,000 in the early morning of Wednesday, January 25. This is the first time that the average has topped this historic level.

The Dow is a stock market index that tracks 30 of the largest publicly-owned companies in the United States. Almost every investor in the United States has exposure to these companies through their 401k or other investment accounts. This rings in an important moment for market watchers and economists alike that have long waited and some predicted this historic day.

What does this signal?
Some are saying that many of Trump’s executive orders are driving the increase in our domestic equities; coupled with the fact that consumer confidence is at an all time high. The global economy is also posed to rally as well. The number “20,000” is more of an investor psychology number then a tangible data point. Some claim this signals that the market is wildly overvalued. Either way, it tells us that a lot of people are buying US equities right now.

What should we do?
Be thankful that your accounts are more than likely performing very well. Stay focused and do not make any rash decisions to sell. 21,000 could be hiding behind the next corner.

-Ali A. Criss, CFP