DJI at 14,000

NEW YORK (AP) -- Wall Street shot higher Monday, sending the Dow Jones industrial average above 14,000 for the first time in 2 1/2 months as investors moved back into stocks at the start of the fourth quarter. While the beginning of the new quarter was an incentive for institutional investors to buy, the market was also encouraged that the worst might be over from the summer's credit and stock market turmoil, and that new economic data would nudge the Federal Reserve toward another interest rate cut at its Oct. 30-31 meeting.

This defies logic. When thing are getting bad. Major worries about subprime, hedge funds liquidation and house prices dropping give no reason for the DJI to move up to this level. This is really a self fulfilling prophecy like my mentor, Dr. Clemen Chiang like to say. People do not realize what they are doing. It is a herd instinct. Everybody is just following. Likely there is no leader but everyone is so blinded by greed that they start jumping into the market. When things turn, these landing would be far below. There will be no safety net to break the fall and many people will be hurt. Some will be hurt very, very, very bad. So if you think you can make some fast money in equities please think twice. Have a long term view. It is still right to invest in good companies. Do your homework. Do not borrow to invest. Do not speculate but invest for the long term.