Well, with the Dow already up nearly 9 percent this year, even after it gained all of lastyear, when the Dow surges so smartly, investors naturally want to know where the heck are we? Near the beginning, middle or end of a bull market?Bob Pisani now with a history lesson on how the markets reacted following previousrecord high closings.(BEGIN VIDEOTAPE)BOB PISANI, NBR CORRESPONDENT (voice-over): So, we finally made it, historichighs on the Dow industrials. But now what? Stock bulls are saying that this could be the startof a sustainable bull market that could last for several years.Their main arguments: first, the Fed is back stopping the economy through low rates.Second, the economy is slowly improving. Third, earnings are at record highs. Fourth, there`srecord cash on the sidelines both from individuals and from corporate America. And, finally,with rates so low, there`s just no other place to put money right now.But there are plenty of headwinds that could prevent another bull market fromdeveloping. Bears point to sub 2 percent GDP growth that is constraining job creation, anemicrevenue growth for corporations, and the threat that the Fed may remove its stimulus programwell before there is robust economic growth.(on camera): The biggest threat to the market`s advance is also its biggest hope, andthat`s Washington -- a bigger deal on tax reform and entitlement, as well as an extension on thedebt ceiling would go a long way towards boosting business confidence, spending and hiringwould likely increase and conversely, the failure to do anything in Washington will also weighon the markets.For NIGHTLY BUSINESS REPORT, I`m Bob Pisani at the New York Stock Exchange.(END VIDEOTAPE)MATHISEN: Here to give his take on what`s next for stocks is Jim McCaughan, CEO of Principal Global Investors. It has $281 billion in assets under management.Welcome. Good to have you with us, Mr. McCaughan.JIM MCCAUGHAN, PRINCIPAL GLOBAL INVESTORS CEO: Good to be here,Tyler.MATHISEN: You know, the last time the Dow was as high as it is today, the multiple,the price earnings ratio on stocks was much higher than it is today. Does that give you anycomfort that equities can move up from even these lofty levels?