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Only once before has the Dow Jones industrial average crossed a milestone of such dizzying stature. Before the magic of 2000 came the mystique of 1000. The Dow first broke through that barrier more than 14 years ago, closing at 1003.16 on Nov. 14, 1972. For nearly a decade before, brokers had dreamed ! about the event, describing it as "romantic" and comparing it to the first breaking of the 4-min. mile. "It's a hell of a news item," said one investment-house partner on the day it finally happened. Economist John Kenneth Galbraith, on the other hand, downplayed it, saying, "Mostly it was useful to people who needed an excuse to get drunk." But many Wall Streeters believed the general intoxication surrounding the event would inspire small- time investors to pour their money into the market and keep the Dow rolling inexorably forward.

The 1000 mark was sweet to Wall Street because it capped a long struggle. The Dow had momentarily crossed 1000 almost seven years earlier, during trading on Jan. 18, 1966, but had fallen back before the end of the day. The index rallied in 1968, but then began a rocky slide as the Viet Nam War continued to eat away at the nation's morale and economic health. For the next few years inflation and recession knocked the Dow down every time it tried to edge up toward 1000.

Finally, toward the end of 1972, came a time of national optimism and prosperity. The economy had been expanding for 24 months, and experts predicted a growth spurt of as much as 6% for 1973. National Security Adviser Henry Kissinger made his famous prediction in October that peace was at hand in Viet Nam. The final boost came on Nov. 7, when President Nixon and Vice President Agnew won re-election in a huge landslide. Exactly one week later the market hit the millennium.

The giddiness prompted Wall Street bulls to forecast that the Dow would break 1100 and even 1200 within twelve to 18 months. Said William Donaldson, chairman of the investment firm Donaldson, Lufkin & Jenrette: "The fact that the industrials went over and stayed over 1000 has big psychological importance." Few investors expected the stampede to continue without a pause, but even the grouchiest bears would not have guessed what actually happened: the Dow was unable to break 1100 until more than ten years later -- during the bull market of the '80s.

After topping 1000, the Dow climbed to a '70s peak of 1051.70 on Jan. 11, 1973, and promptly fell into the worst bear market since World War II. The Watergate scandal was heating up, inflation surged, and the Arab oil embargo hit. The Dow plunged relentlessly for nearly two years, until it lost 45% of its value, hitting a '70s nadir of 577.60 on Dec. 6, 1974. The market seesawed upward during the rest of the '70s, but was kept under 1000 by inflation, recessions and a second oil shock in 1979. The lesson of those sober years is that reaching the 2000 milestone reveals almost nothing about what is to come.