Blake Schwendiman's Blog and Blook

So, the Dow closed about 12,000 yesterday. I've actually been waiting for that day for a long time, just so I could tell this story.

Back in 1999, in the Internet boom, I was somewhat involved in stock trading and often spoke to my dad (a CPA) about the markets. In May, the Dow crossed the 11,000 mark a little more than a month after crossing the 10,000 mark. I'm a technology guy and even though a lot of the stuff didn't make sense to me, it seemed like there would be no end to the good news in the markets.

A few days after the 11,000 level was reached I said to my dad, "I wonder how long until we cross 12,000." I was thinking there would be another record. He just smiled at me and said, "Actually, what I wonder right now is how long it will be until we cross 4,000 again."

Dad has always had a pretty good head for money and finance. We didn't bottom out at 4,000 but it sure has been rocky for the past seven and a half years and his instinct about the markets was right on. I've often thought about that experience and it helps me stay grounded. Things might look like they're coming up roses and that there's no end to it right now (in any aspect of life), but it doesn't hurt to hedge against the real world.