Yes, the DOW index passed the 10,000 mark today. Back in January, when I first advised readers to invest in the stock market by following Uncle Sam in his purchases, the index was in the mid-7000s. Wow, the index has risen by 35%. More relevant to my advice, I specifically suggested buying what I had bought for my “Great Recession” portfolio. Well since then my portfolio has increased by over 50%.

I have since then had to counter a host of arguments that the stock market has been artificially pumped up by “liquidity” meaning the Feds have injected so much money in to the system it is awash with dollars. Well yes, it is, but the important thing is that the funds have been put to use in boosting share values which in turn boost wealth of share holders.

Now all agree that the market “has legs,” which means it will continue to do well. I would be happy to see another 35% rise over the next six months in the DOW index. I am sure my “Great Recession” portfolio will do at least that well.

My advice is still to “follow the money,” i.e. follow Uncle Sam in his purchases. However, now that we are safely back from the abyss, I don’t see the Feds buying into any other businesses. But follow the general idea, invest in those shares that were excessively devalued and offer good returns as business gets back to normal.