January 25, 2007 | posted by Michael Baxter in IABN |

We are running out of fingers. Here we are, still suffering the January shivers, and the Dow Jones has managed its umpteenth new high of the year.

So far, it feels as if 2007 has been one long set of new highs. In fact, the Dow Jones Industrial 500 broke the record on the first trading day of the year, and then repeated that feat on the second day.

By the close of the day yesterday, the Dow had passed yet another new high, the fifth of the year - and is now 158 points above the start of year position, and 899 points up on the January 14 2000 level of 11722, which was the all time high until last year.

On this occasion it wasn’t falling oil that did it either. In fact oil was up again yesterday, now $5 up on the level it fell to last week.

This time it seemed George W had a lot to do with it. His State of the Union Address seemed to raise hopes, leading to a patriotic buying spree. Company results helped too.

It is a little odd. The prognosis for the US economy is about as bad as it has been for some time. Expectations for the US housing market are poor, and yet stocks just keep on rising.