NEW YORK (CNN/Money) -
It's a big deal: after three-straight years of negative returns, Dow 9,000 marks a significant turn in the market, and -- potentially -- in investor sentiment.
The Dow Jones industrial average jumped 116 points, or 1.3 percent, on Wednesday to close above 9,000 for the first time in nearly 10 months as investors focused on a report showing unexpected strength in the service sector of the economy.
The S&P 500 rose 1.5 percent to its highest close in 11 months while the Nasdaq composite index, laden with tech issues, jumped 1.9 percent to its best close in just over a year. (Click here for Wednesday's market wrap up).
To be sure, investors have a long way to go to gain back the trillions in shareholder wealth that has been lost since the bubble burst in early 2000.
| Fortune.com: Mid-year guide
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It's a pretty good start though. Consider: After Wednesday's gains, the Dow is up about 8.4 percent so far this year, the S&P 500 has risen 12.1 percent and the Nasdaq's gained a stunning 22.4 percent.
Indeed, though nobody wants to jinx things, this is very much -- by almost any definition -- a new bull market. (For more, see "Calling a bull a bull.")
But bulls come and bulls go. And just like other false starts of the past three years, skeptics worry that the fundamentals of this latest advance aren't sound.
Consider the latest economic data. The market clearly is pricing in a near-term economic rebound, but there is little evidence of it. The jobs market still is weak. Business spending is, too.
For a full round-up, see "Is Wall Street settling for good enough?" and what 10 key economic indicators are saying now.
Valuations are another problem. The whole idea behind buying a few months ago was that, sure things looked rotten, but at least stocks were fairly cheap. No more. There are a lot of ways to assess stock values, of course. (For a complete analysis, see "Getting stretched.")
All of which is to say you shouldn't get too excited and make a lot of drastic moves in your portfolio. A lot of people pulled out of stocks last year, telling themselves they'd wait until the market seemed safer.
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The problem is just when it seems safe (like now) is when the risks have increased. (For portfolio tips now, see "Dow 9,000: Time to buy?")
Then there is the unusual strength in the Treasury market at the same time that stocks have been on fire. (For more, see "Stocks vs. Bonds")
And finally, some investment ideas: What's right about Microsoft, Finding the perfect fund and Beware of dividends, which lists companies Merrill Lynch thinks are due to raise dividends.
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