The Dow closed at an all-time high last week. The question for stock investors is: so what?
Unless you invested in one of the index mutual funds or exchange traded funds that track the Dow what difference does this record mean to the average investor?

In truth, the record means very little except that it has some psychological significance. There may still be investors sitting on the sidelines who were burned following the downturn earlier this decade that will see the fallen record as an omen that it’s time to get back in the market.

Of course, they may have missed the boat unless the economy keeps slowing to the point of a near recession and overall stock prices retreat.

The record-breaking Dow run was fueled by strong earnings in the first quarter, an excess of cash in the market looking for a solid place to land, and maybe some excitement of beating a record.

So, back to the original question – what difference does a record Dow close make to the average investor? In dollar and cents terms, the answer is it doesn’t make any difference.

It does signal a confidence by institutional investors who invest heavily in the large-cap, blue chip stocks that make up the Dow and that should be comforting to individual investors.

However, if setting a record brings some confidence to the market and investors, then that is worth celebrating.

Just don't get carried away. The economy is slowing and that means lower earnings expectations, which may cool stock prices.