Musings for a long weekend...

As we approach the long weekend, it is important to place today's market close into context.

Yes, the market reached a new high amidst good employment data.  On the face of this, this is quite good news...isn't it?  Yes.

But, while we are not market forecasters, we are however financial pragmatists.  Meaning, we need to ask ourselves, what should the DJIA be right now?  

Several years ago, SoHo did an appearance on CNBC, and explained the math.

Based on market levels from 2007/2008, the DJIA would today need to be well north of 22,000 for investors to "break even."  In other words, for Baby Boomers to be back on track with regards to their retirement the DJIA would need to be a lot, lot higher.  Almost 30% higher.

So take the time this weekend to ponder this and consider the risk.  Investors no doubt will be pouring back into equities as market pundits tout "new highs"...but with 22,000 as the target, we should be hearing that quite often.

At SoHo, we always advocate that investing is not a sprint, but a marathon.  Keep focused on the long game and do not be led into a suckers game and follow the herd.

In the interim enjoy the long weekend!