The last time the Dow was this high, Apple had just sold its first iPhone and George W. Bush had another year as president. The U.S. housing market had yet to implode, and the financial crisis that brought down Lehman Brothers was still a year away.
Despite the stunning gains in the stock market since then, the U.S. economy has not fared nearly as well. Unemployment was just 4.7 percent when the Dow last reached a record, versus 7.9 percent today.
Stocks have rallied powerfully this year, impressing even market's most ardent skeptics, on optimism that the housing market is recovering and companies are slowly starting to hire again. Strong corporate earnings have also helped increase demand. The Dow is already up 9 percent so far this year, which many would consider a respectable gain for a full year.