KUSA - For many, 13 is a very unlucky number. However, in the case of the Dow Jones Industrials, breaking 13,000 is a sign that things are changing for the better.
It may be just a number, but 13,000 signifies that the economy is moving in right direction.
The Dow hasn't hit this level since May 2008.
Even though there's a long way to get the country back to economic health, this is a positive sign. Unemployment is at its lowest level since February 2009, and economic output grew every quarter in 2011.
John Claxton, Vice President and Financial Advisor of RBC Wealth Management, is optimistic about the growth and great strides the market is undergoing. However, he is advising that investors remain cautious rather than jumping back in with both feet.
"This is like every major milestone in which should be in a period of assessment. Last year, the Dow was the star performer. It was up five percent, plus dividends. This year, other emerging markets are well ahead of the Dow," Claxton said.
After all, last July the Dow was inching toward 13,000 before plunging 16 percent over the next two months.
Looking forward, Claxton says the growing Dow may help boost younger participation in the stock market.
"We are getting broader participation by retail investors right now," Claxton said. "That is a good sign because long term, the markets tend to work. Howerver, we are always cautious in sitting down and making sure the indvidual, whoever it is, knows their ability and williness to accept risk."
It is important to be prepared for continued short-term volatility. Market volatility comes with political pressures and global concerns.
Garrett Boyd contributed to this report.
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