Reply #29: The DJI 30 are where investors first run from the S&500.

[TahitiNut]

The DJIA is a trailing edge investment indicator. Investors lacking confidence in the broader-based economy, first shift to the 30 major industrial stocks. If you take a look at the DJIA, it's essentially flat for five years, going back to 2000.

If, on the other hand, you look at the S&P500 (which I regard as far more indicative of the equity market), you'll find it's quite a bit DOWN (more than 15%) from highs of over 1400 in 2000.

The equity markets are on the "life support" of 'forced' investments. Huge pension funds really have no place to go when the Fed keeps interest rates artifically low. The investment economy is being stretched like a rubber band and will eventually snap.