Oct. 14--The Dow Jones industrials powered through the 10,000 mark for the first time in more than a year Wednesday, fueled by upbeat profits from Intel and JPMorgan Chase.

The Blue Chip index entered five-figure territory just seven months after it hit a 12-year low of 6,547.05. The Dow closed at 10,015.86, up 144.80 points. The Dow peaked at 14,164 in October 2007, then lost more than half its value after the financial meltdown last fall. The breathtaking rally since then brings stocks to roughly break-even for the past 10 years.

Some regard Wednesday's market comeback as the most visible sign yet that investors believe the economy is recovering from the financial crisis and recession.

"For me, I get kind of excited because I think that's the threshold of where we need to be," said Steve Lindemann, owner and president of Linco Inc., a San Dimas custom picture frame business.

James L. Hotvet, owner of HOTVET Financial Advisors in Pasadena, was more nonplussed.

"It's not a big deal to me and I don't think it is to my clients," the 56-year-old financial adviser said. "But there will be a lot written about it in hopes that equities will do better down the road."

So where should we be putting our money?

A lot of places, according to Hotvet.

"You need to have a well diversified portfolio," he said. "You should have your money spread around the world in things like stocks, bonds and REITs (Real Estate Investment Trusts). And your investments should be in developed markets like Europe, Japan and Australia, and in emerging markets like China, India and Brazil."

When it comes to stocks, Hotvet advises a conservative approach.

"I don't believe in market timing -- that's a very hard game to play," he said. "I'd buy and hold with a diversified portfolio and try to ignore the flavor of the day."

Wednesday capped a stunning 53 percent comeback for the Dow.

"It's almost like an announcement that the bear market is over," said Arthur Hogan, chief market analyst at Jefferies & Co. in Boston. "That is an eye-opener -- 'Hey, you know what, things must be getting better because the Dow is over 10,000."' Ahmed Ispahani, a professor of business administration and economics at the University of La Verne, said many investors are waiting to see what kind of health care reform -- if any -- will be passed.

That could well influence where investors put some of their money, he said.

"It could end up being a big cost for businesses, so costs would go up and companies would continue outsourcing overseas," he said. "But if it's not too costly ... the economy will really pick up."

Ispahani said he's parked many of his investments in CDs.

"The rates are very low, but at least my money is stable and it's covered against inflation," he said. "I think Congress will pass some kind of health care measure, and the next thing in terms of investment could be in things like drugs, medicine and hospitals."

Ispahani acknowledged the economy is improving but said there are major challenges to overcome.

"Unemployment is still very high and the trade deficit is still high," he said.

In Southern California job losses have been especially brutal, pushing Los Angeles County's unemployment rate to 12.3 percent in August with some cities rising above 15 percent.

New figures are scheduled to be released Friday by the state Employment Development Department.

Another report released Monday by the National Association for Business Economics declared "the recession is over," although job losses likely won't be regained until 2012 or beyond.

The nation's housing market is likewise expected to gain steam, according to the report, with "robust growth" in 2010.

Housing starts will rise 38 percent and residential investment will increase 8 percent, with 2010 marking the first year since 2005 that the housing sector will contribute to overall growth, the NABE report said.

The Associated Press contributed to this story.

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