SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) was aiming for its ninth straight day of gains on Wednesday as the exchange traded fund continues to grind higher after setting a new all-time high last week.
Of course, the big question for investors now is whether the incredible rally from the March 2009 bottom is due for a major correction four years later, or if the market can keep chugging along as the economy slowly improves.
The Dow ETF is up 11% so far this year and its tracking index on Tuesday saw the sixth consecutive day it has set a record close, the longest such streak since the late 1990s, reports Sam Mamudi at Barron’s.
The stock rally has been met with widespread skepticism despite nominal record prices in the Dow. Many investors think the market is in a bubble fueled by easy monetary policies from the Federal Reserve and other banks after the financial crisis.
However, noted Dow Theorist is telling newsletter clients to forget their fears and buy DIA, the Dow ETF.
“By taking a position in the market, you’ll be casting yourself on the side of the optimists, and you’ll also be casting your vote on the side of [Fed Chairman] Ben Bernanke,” he told subscribers. [Russell Says Close Eyes and Buy Dow ETF]
“Yes, I know that this market is uncorrected during its long rise from the 2009 low, and I know that there are risks in buying an uncorrected advance that is becoming uncomfortably long in the tooth, but my suggestion is that my subscribers should take a chance … and take a position in the DIAs,” Russell said.