The historic number 13,000 may be cause for optimism, but local financial consultants are taking in stride Wednesday’s news about the Dow Jones Industrial Average all-time high.

The new high is not unexpected said Bill Byrne, financial consultant with Smith Barney, with offices at United Mississippi Bank.

“We’re bullish on the market this year,” Byrne said. “We’re expecting plenty of volatility this year, 100-point gains up and down through the entire year, and that’s different from recent years.”

Indeed, Smith Barney analysts suggest that the Dow may be at 1400 at the end of 2007, Byrne said.

Russell Butts, a financial consultant with Edward Jones, pointed out that it took about seven years for the Dow to go from 11,000 to 12,000 and then about eight months from 12,000 to 13,000.

“It certainly points out the resiliency of our economy after 9/11, the corporate scandals and oil prices at an all-time high. It shows our economy is extremely resilient,” Butts said.

The general public and investors have to remember that the market makes natural corrections, Butts said. “We can’t get caught up in the fervor of 13,000 and forget that the market very naturally adjusts itself.”

The Dow reflects the effects of the international economy, also. Butts said that includes the U.S. deficit, the historical lows of the U.S. dollar versus the euro and the strong companies located overseas.

Byrne added to that the effects of markets in China and India. “We like the world economy,” Byrne said. “Some of the emerging markets, as their lower class moves to middle, demand more U.S. products,” he said.

In fact, The Associated Press reported this week that many large companies reporting good news in quarterly reports — and having an impact on the rising Dow — had made big profits overseas.

Byrne said valuation of stocks seems reasonable and corporations are reporting healthy balance sheets. “There are opportunities for mergers and leveraged buyouts,” he said.

These factors are encouraging in forecasting the future of the economy.

But that does not change some basic rules about investing.

“Basically, you still want a long-term perspective,” he said. “We recommend a good allocation model based on your risk profile.”

The recent history of the Dow is good reason to be cautious, he said.

“From 1996 to 2000, the market grew too fast. In 1999 there was the technology bubble,” he said. “And I think now is not the time for any irrational exuberance.”

Sim Mosby, a CPA and a certified personal financial specialist, agreed.

The one thing Mosby strongly cautions against is jumping into just one stock. “You want to cover various industrial and market sectors,” he said.

The stock market is fascinating and not easy to predict, Mosby said. “When the stock market is doing well, everyone’s investments are doing well and retirement accounts are booming more.”

Still, the most important rule of thumb is to be diversified and to have a plan, he said.

“Have a properly diversified portfolio with a long-range investment goal. Figure out your goals and your risk factors and stick to your plan,” Mosby said. “That way you win against the stock market.”

Byrne said other factors remain that could have effects on the volatility of the market.

Some of those factors reported in the last three days include energy costs that continue to rise, a housing market that seems sluggish and perhaps a credit crunch.

The investor and the overall market will move ahead based on many factors, Byrne said. “But the market does better climbing a wall of worry, and it’s doing that well right now.”