With the Dow hitting 13,000, many of the comments on this site are already turning negative. Yeah, it's great for the 1%. The stock market's nothing but a casino for the wealthy. Wealthy individuals and corporations are making out like bandits. Everyone else is screwed. This doesn't affect me; I don't have any money in the market.
Some of us depend upon the stock market and the time value of money to enable us to retire. We've watched our investments rise, fall, crater, crawl back up, stagnate, and drive us crazy. Some folks sock away their money on the advice of financial planners or their own risk profile. Others of us take an active interest in these things, and manage their investments proactively.
So why should anyone care if the Dow is over 13,000?
Let me give you a personal example. If my husband and I retire, two job vacancies are created. We're both in good professional positions, and while we've had challenging and rewarding careers, we're ready to step aside and see someone else step up (or be hired) into our jobs.
We do need to make sure that we've built a solid financial foundation for our retirement. So far so good. We're building ourselves back from various market set-backs, and the strong performance of stocks in our 401(k) and IRA accounts is a big part of the equation.
Imagine the hiring possibilities if all of us aging baby boomers stepped away from our jobs and retired right now, or in the next year. Companies could promote from within, removing the "baby boomer ceiling" that's holding many people in place. Companies could hire new talent from outside, bringing fresh ideas and energy and innovation.
Secondary benefits would accrue to those businesses dependent on retirees: construction, healthcare, recreation, to name a few.
Millions of baby boomers - my husband and myself included - would have the time to devote to non-profit activities, mentoring students and people starting businesses, and actively helping with their grandchildren.
Unless and until we unlock the financial shackles holding everyone in place, nobody's moving up, and the dream of a good job and a solid middle class lifestyle will be beyond reach for many.
So yes: the rising Dow does matter. It matters to me, and it should matter to many of you.