History of the Dow Jones Industrial Average
Everyone is excited about the Dow going over 12,000. It is a strong indicator for an upswing this year.
Well, let’s take a moment to look some of the facts. Did you know that from the Depression up until 1976 the Dow would hover around 1,000 and breaking 1,000 was an indicator to sell. This was only 35 years ago. It took 46 years to surpass 1,000. The Dow steadily climbed in 12/1986 to 1,930, ten years later 6,484 in 12/1996, in 12/2006 we doubled it at 12,445, and back down to 10,143 in 2010. The highest was 14,093.
I told my friends when the Dow dropped don’t worry about it. The Dow was artificially high for a long time. It is healthier for it to hover at 11,000 than constantly rise.
I am happy it is at 12,000 but I hope it does not artificially take off like it did during the Enron and WorldCom Days. So remember – hover is good. (gtp 1/2011)
Even with the events that are happening in Japan, I still maintain that the DJIA is better off oscillating than continuing on a upward trend. (gtp 3/17/2011)
“A depression is when you don’t have a job, a recession is when your neighbor doesn’t have a job.” Anonymous.
Gtp 1/2011
