Dow Jones about to hit milestone, but it may not be more than just a number

Local financial analyst says market could correct itself soon.

Markets on Wall Street open today in rare air. 

The major indexes are at historic highs and the Dow Jones continues to flirt with the milestone of 20,000. 

La Crosse financial analyst Jim Naleid believes the milestone is meaningful, but in a limited way.

“There’s certainly a psychological impact that most people look at as a significant benchmark,” Naleid said.

But the numbers aren’t as significant as they seem, Naleid believes.

“Actually, there are numbers on either side of that are probably more important from a trading or an investment perspective,” he said, adding that price shares continue to outstrip earnings for many stocks, which could lead to some amount of market correction soon.  

“It could also be a very tricky time for people thinking they better jump in,” Naleid said. “The market is a little bit ahead of itself right now. Even though it’ll cost 20,000, that doesn’t mean anything more than that’s a higher number.”

Naleid believes the gains in the stock market recently may be fueled by speculation about policies of a new Donald Trump presidential administration. 

The Dow was at 7,949 when President Barack Obama first took office.