What's behind the Dow's record high? 4 theories

The benchmark index's exceptional run stands in stark contrast to the average American's mediocre economic reality

Traders work on the floor of the New York Stock Exchange during a record-setting day on March 5.
(Image credit: Spencer Platt/Getty Images)

The Dow Jones Industrial Average on Tuesday stormed past its previous all-time high, capping an extraordinary, years-long bull run that began in the depths of the Great Recession. The Dow closed at 14,254, pulling ahead of its previous closing day high of 14,164.53 in October 2007, as well as an intraday high of 14,198.10 achieved at roughly the same time. The surge in market activity stands in stark contrast to the slow grind of the American economy, which is suffering an unemployment rate of 7.9 percent and grew at a near-standstill pace in the fourth quarter of 2012. Here, four theories for why the Dow is screaming hot:

1. The Fed's easy-money policies

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Ryu Spaeth

Ryu Spaeth is deputy editor at TheWeek.com. Follow him on Twitter.