Almost 15 years after first reaching 1500 points way back in March 2000, the S&P 500 has finally climbed the 500 points necessary to reach its new milestone of 2000. Will it take another 15 years to reach 2500? Who knows, hopefully the index will trade in a cycle for a while so we can continue accumulating dividend growth stocks. The last 15 years have been essentially dead with many peaks and valleys during the period.
The Dow has also experienced long periods between major milestones. The DJIA first reached 1000 points in 1972. The Dow then stayed under 1000 during the rest of the 1970s and into the early 1980s. Once it finally broke out of its long trading range, it jumped up to 2000 in 1987. What happened once the Dow surpassed 2000? Well, I think we all know.
As many of us have seen, the market can stay depressed or overvauled for years even decades. This is the primary reason why I focus on dollar cost averaging and believe market timing ultimately will cost you money in the long run.
Let the race to 3000 begin!