Dow Breaks 12,000 for First Time Since 2008

February 08, 2011 | Greg Leonberger, FSA, EA, MAAA, FCA, Director of Research, Managing Partner

On Tuesday, February 1, the Dow Jones Industrial Average (“Dow”) closed above 12,000 for the first time in two and a half years; the index was last above 12,000 on June 19, 2008. The Dow then dropped 46%, bottoming at 6,547 on March 9, 2009. With Tuesday’s close above 12,000, the index has risen 184% from its bottom, clearly rewarding investors who rebalanced into equities when the market was falling. Although the market has not reached its high water mark of 14,165 (achieved on June 9, 2007), hitting 12,000 was seen as another positive trend in the recovery process.