A new Dow record - rational exuberance or just plain wishful thinking?

The Dow Jones rebounded from its recent subprime-induced troubles yesterday, but we reckon the market will be wobbly for quite some time to come.

The Dow Jones hit another record high yesterday. It shot up more than 280 points.

The surge of animal spirits came amid decent July sales forecasts from Wal-Mart and Target. Rio Tintos $38.1bn bid for Alcan also helped. But most importantly, a number of analysts commented that "worries about subprime lending appeared to be overdone," reports The Telegraph.

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