Salient to Investors:

  • $19.99 sounds a lot cheaper than $20. The S&P 500 had trouble with the 1,000 level from July 1997 to September 2003, and then following the financial crisis.
  • It took the DJIA from 1968 to 1982 to get comfortable with the 1,000 level.
  • Nicholas Colas at ConvergEx said big, round numbers matter but the lack of euphoria shows we are not in a bubble. Colas says we are missing the shoe-shine boys in the 1920s and cab drivers in the 1990s, while money flows have been spotty in 2014 unlike the torrents in the 1990s.
  • John Manley at Wells Fargo Funds Mgmt said the day he turned 60, he felt 10 years older than the day before, so round numbers in the stock market can give us temporary hiccups. Manley said strategists should not do too much thinking.

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