Lots of people are excited that the Dow hit 20,000 this week—but what does it really mean?
But investing is as much about perceptions as fundamentals, and because those four zeroes look impressive to our mammalian brains, the milestone is perceived to be important.
Personally, I couldn’t care less.
When I research growth stocks, I don’t judge them by the price they’re trading at; I judge them by their trends. And that’s what I’m going to continue to do.
Today, the market’s trend is strong; in fact, the trends of smaller, growthier stocks are even stronger than the Dow. So the Nasdaq Composite is where the real action is.
That’s fine with me. And if it gets even more people interested in investing, all the better. As I write, my portfolio in Cabot Stock of the Month is holding 18 stocks, and 16 of those positions are profitable.