Summary
- The Dow Jones Industrial Average reached new historical highs last week, while the S&P 500 and NASDAQ remain near their peaks.
- Current market strength is attributed to Federal Reserve monetary policy, particularly the quantitative programs initiated under Ben Bernanke since 2010.
- Despite concerns about a market decline, ample M2 money supply and moderate Fed policy suggest continued economic and market growth.
- The U.S. economy has maintained steady 2-3% growth since 2009, supporting a resilient stock market even through brief recessions.
PM Images/DigitalVision via Getty Images
Last week, the Dow Jones Industrial Average hit two new historical highs.
On Tuesday and Wednesday, the market hit new peaks.
The S&P 500 Index and the NASDAQ did not follow suit.
Although relatively
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