Stocks Highest Since Summer 2008: Dow Tops 12,000. S&P Tops 1,300.

We mostly focus on rate and bond markets, but it’s worth noting the opposite side of the trade today. Rates rose about .2% today because manufacturing inflation spooked bond markets, but the inflation is from a good trend of growth (this table shows growth trend). Stocks liked the news, with the Dow ending at 12,040, the highest close since June 2008. And the S&P 500 ended at 1308, the highest Since August 2008.

Let’s just hope the next three months don’t end up like the three months that followed the 2008 stock highs. Fall 2008 is when global financial markets officially melted down.