The Dow Jones Industrial Average closed at a new all-time high Tuesday, and while there is continued debate over what it means and what's driving it, I think it's a reminder of the nation's greatness. The DNA of America is undeniable, and it continues to work, albeit not nearly as well as it could during this war on success and redistribution of wealth and accountability.
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Today stocks like Linked-In (LNKD) and Yelp (YELP) will dominate trading, and it really doesn't matter if they're up or down because their futures are immense, which makes our future immense as well. Homebuilder Ryland (RYL) posted earnings that beat the Street, offering guidance well above current consensus. Sure, this is a nation longing for leadership and freedom. We want the freedom to live without being pitted against each other. We want the freedom to not be punished for wanting to be successful. We want the freedom to start businesses, families and dream. For too many people, however, those particular wants have been stuffed in a back pocket or recesses of our minds.
For years I've talked about how the stock market reflects our dreams and desires and willingness to take risks or be great which never happens without a price. While that premise is true the equation has changed, and now our stock market reflects all of those things but for the entire planet. But it still happens in America and the stock market is still the best scorecard.
Moreover, the stock market isn't just a place that displays success it also displays redemption. Real hope rewarded. Real vision and sweat and accomplishment are rewarded, not demonized.
We've had great success this year featuring redemption stories like auto parts makers and companies like Zale (ZLC) written off as dead. In fact some of the hottest stocks in the market were supposed to be on the scrap heap of Capitalism's need for creative destruction. Best Buy (BBY), Gamestop (GME) and Bed Bath and Beyond (BBBY) are just a handful of names that were supposed to be victims of the nation's competitive instincts.
Then there's the story of Eastman Kodak. This Great American Company became less great as it moved away from its roots and instincts. It's funny because you often hear "private business would never be run like government" but in this case the company was. The company was slow to react to competition, whined about fairness in the film market, sat on innovation (digital camera) and spent money unwisely. Eventually the company went bankrupt. Now, on Friday the stock will re-debut on the New York Stock Exchange.
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Once so important, it was part of the Dow Jones industrial Average from 1930 to 2004 and it will begin a humble new life as a high-end printer company selling expensive machines with cost-competitive ink replacement. The new symbol is KODK.
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