Wednesday/ what now, for the Dow?

The stock market closed at an all-time high on Wednesday with the Dow Jones crossing 19,000 for the first time this week.  So how come the USA Today of Tuesday raises the possibility of the R word (R for recession)?  Besides, a recession may or very well may not happen the next four years, writes Barry Ritholtz in Bloomberg View column of Oct 14 – ‘The present U.S. economic cycle is a long slow recovery from a deep recession that started in December 2007 and was aggravated by the credit crisis of 2008-09. The Wall Street Journal said the expansion “has now continued for 88 months, making it the fourth-longest period of growth in records stretching to 1854.” But expansions don’t just get old and die; something fundamental has to happen to arrest the progress. And remember, records get broken all the time’.

It LOOKS as if Republican presidents have resided over recessions most of the time since 1900, but the article points out that presidents really do not have that much control over economic cycles. And any policies that an administration may put in place may take a year or several years to have its full impact felt on the economy.

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