The Dow
Average is the average of 30 companies selected to “represent” the US economy.
It is the measure we continue to be asked to panic over, even though we
actually probably invest in the S&P 500.
In 1915,
only wealthy investors and compulsive savers bought stocks. In 1925, somebody
started a fad and everybody with extra cash bought stocks and created a
“bubble”. The bubble tripled stock values by 1929 and corrected back in 1930,
corrected back again in 1931 and crashed in 1932. At the same time, the Dust
Bowl drought hit US agriculture and families lost farms. Banks failed.
In 1952,
the Dow recovered to reach the 300 level where it peaked in 1929. It continued
to build to the 600 to 800 levels through the 1960s and 1970s. It jumped to 1100 in 1983 and employees were
enrolled in 401k Plans. This allowed it to advance to 10000 by 1999.
In 2008
the Mortgage Meltdown resulted in a stock market crash that took the Dow from
11000 to 8800 in 2009. The Federal Reserve provided banks with $4 trillion to
recover and the Dow rose back to 11000 by 2010. Day-Traders borrowed money from
the banks and bought stocks and moved the Dow to 18000 by 2016.
Trump was
elected in 2016 and stocks rose from 18000 to 21000 in 2017 and 25000 by 2018.
Dow Jones Closing Average by Year
1915 74.45
1916 95.27
1917 87.87
1918 80.97
1919 99.79
1920 90.01
1921 73.39
1922 93.24
1923
94.87
1924
99.65
1925
134.40 Bubble
1926
153.00
1927
176.07
1928
226.17
1929
313.54 Correction
1930
236.04
1931
138.60
1932
64.53 Crash
1933
84.50
1934
98.16
1935
120.35 Roosevelt
1936
162.07
1937
166.45
1938
132.36
1939
142.57
1940
134.64
1941
121.93
1942
107.15
1943
134.92
1944
143.32
1945
169.66 Truman
1946
191.52
1947
177.48
1948
179.78
1949 179.67
1950
216.28
1951
257.41
1952
270.35 Eisenhower
1953
275.84
1954
334.34
1955
442.69
1956
493.21
1957
476.07
1958
491.26
1959
632.57
1960
618.02 Kennedy
1961
691.74
1962
639.14
1963
714.69
1964
834.09 Johnson
1965
910.70
1966
872.78
1967
879.48
1968 903.96
Nixon
1969
875.72
1970
753.12
1971
884.87
1972
950.08
1973
759.13
1974
759.13
1975
802.89 Ford
1976
975.20
1977
894.37 Carter
1978
821.13
1979
844.38
1980
891.14 Reagan
1981
932.95
1982
884.53
1983
1190.78
1984
1178.59
1985
1327.99
1986
1793.10
1987
2277.53
1988
2061.48 Bush I
1989
2510.33
1990
2679.45
1991
2929.04
1992
3284.08
1993
3524.92 Clinton
1994
3794.22
1995
4494.28
1996
5739.63
1997
7447.01
1998
8630.76
1999
10481.66
2000
10729.38 Bush II
2001
10199.29
2002
9214.85
2003
9006.64
2004
10315.51
2005
10546.66
2006
11409.78
2007
13187.26
2008
11244.06 Obama
2009
8885.65 (Meltdown)
2010
10668.58 (QE)
2011
11957.57
2012
12966.44
2013
15009.52
2014
16777.69
2015
17587.03
2016
17927.11
2017
21750.20 Trump
2018
25046.86
2019
25524.85
Norb Leahy, Dunwoody
GA Tea Party Leader
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