MY ANNUAL COMMENTS ON THE DJIA The Dow Jones Industrial Average. First of all, I am not a stock broker, any comments made are just observations and not advice.
(If you read my earlier blogs I ask people to not get excited by high and lows of the stock market.) A slow growth is better for the economy on the whole. The basis for my comment is that most of the previous highs were artificially stimulated by the fraudulent misrepresentation of corporate financial statements. Well we are there again. DJIA is artificially high at 19942. There was a lot of hype, anxiety and awe waiting for the DJIA to reach 20,000 but it didn’t happen. But this bubble is a chewing gum bubble and when it burst, it’s going to make a mess.
To recap. I believe it is best to look at the stock market in years instead of days. 2010 DJIA was 11,577, 2011 DJIA was 12,218, 2012 DJIA was 13,105, 2013 DJIA is 16,577, 12/31/2014 17,823, 12/31/2015 17,425, 12/31/2016 19942.
Another 2k jump in points again.
Since the numbers have gotten so high, it is better to look at the % of change.
From 2010 to 2011 5.5% change, from 2011 to 2012 7.26%, from 2012 to 2013 21% change, from 2013 to 2014 7% change. From 2014 to 2015 .36% down. From 2015 to 2016 14%. From 2016 to 2017 14%.
Remember my warning that the DJIA shouldn’t double in 10 years 2006 12440, 2016 19980. It’s close.
I would like to add the S&P this year 2006 1424, 2016 2238. The make-up of stocks in the S&P Index is different than the DJIA and I believe it will be a better indicator in the future. It isn’t good for this one to double in ten year either.
Have Fun. We will check in again next year.
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