Andrew Krei, co-chief investment officer, Crescent Grove Advisors: There is a psychological milestone element around something like a Dow 40,000 moment where I think it enters the zeitgeist. That can breed excitement among retail investors, but less so on the professional, institutional-allocator side of things. There’s also an element of the round number of resistance among technicians, where whether it’s 5000 in the S&P 500 or 40,000 in the Dow, it’s such a clear round number that people will anchor off it, for better or worse.
But we don’t spend much time looking at the Dow. We look much more at the S&P 500 because it’s a broader representation of the U.S. market and economy. It’s much more comprehensive in terms of having the bigger names like Berkshire, Nvidia, and Alphabet. More generally, we think that if we get a soft landing, Goldilocks environment, that’s generally a good backdrop for risk assets. In terms of the Dow, we think things like financial services stand to benefit in a broadening market scenario.
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