Market milestones mean nothing

The Dow may have passed the 17,000 mark last week, but it's value that really matters.

It's been a good month for big round numbers in the markets. Last week, America's Dow Jones index rose above the 17,000 mark to a new record. The S&P 500 is around 2,000 and Britain's FTSE 100 is expected to hit 7,000 soon. But while these round numbers generate headlines, clearly there is nothing intrinsically significant about them.

We only consider them to be milestones at all because of "our brains' attempts to impose order and assign categories to numbers that vary continuously", says US journalist Carl Bialik.

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Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.