Is The Dow’s Lost Decade Finally Over?

The Dow Jones Industrial Average has never been higher.

Used as a proxy for the economic health of the United States, the bluechip index is showing all the signs of renewed vigor despite lingering high unemployment — which still stands at uncomfortable 7.9 percent — and slow gross domestic product growth — which came in at a minimal rate of 0.1 percent in the last quarter of 2012. However, not all analysts are convinced that the rally will continue.

Shooting past the critical threshold set back in 2007, the Dow set a new record on Tuesday. The index surpassed its former highs and traded above its record close of 14,164.53, set on October 9, 2007, and its intra-day high of 14,198.10, which happened two days later. At 9:49 a.m Eastern Standard Time, it surpassed its pre-financial crisis peak and rose 92 points to 14,221. Intra-day, the Dow achieved a new record peak of 14286.37. To round out a record day, the Dow closed at its highest closing level in history at 14,253.77.

Stock market participants are often wary of reading too much into the breaching of a psychological benchmark such as this one, yet this record high does hold a measure of significance. It serves as a bookend for the financial crisis, at least for the Dow, which has suffered more than a decade of radical swings on the stock chart — including the twelve-year low of 6,547.05, hit on March 9, 2009…