Mis-Adventuring and Expecting a Different Outcome
Dow Rallies To a Record Close; Credit Fears Easing
Citigroup, UBS Warnings Fail to Slow Stocks' Advance
By Tomoeh Murakami Tse Washington Post Staff Writer Tuesday, October 2, 2007; Page D01
NEW YORK, Oct. 1 -- Stocks kicked off the fourth quarter with a strong rally Monday, with the Dow Jones industrial average closing at an all-time high despite warnings from two major investment banks that they would be hit by substantial losses from the ongoing credit crunch.
The rally came as investors bought shares of small companies and ventured back into the banking and housing sectors. These areas have been battered in recent months as investors sought safety in Treasury bonds and shares of multinational companies during the turmoil in the subprime mortgage sector.
The closest metaphor is a bunch of school-kids who have had their drugs confiscated, so they sulk and pound on the floor and feel sorry for themselves in the ext…