Friday, February 28, 2020

Dow 2020 Rollercoaster


The Dow Average oscillated to the 26,000 mark in 2019 up from 18,000 in 2016.  The Dow entered 2020 at 28,868.80 and hit the 29,000 mark on 1/15/20 and bounced around the 28,000s and 29,000s all year amid predictions of Dow 30.

As of 2/27/20, the Dow is back down to 25,759.69 and has lost 3,109.11 points. The Dow will recover because of high net worth and continued demand for products and services.

The basic rule is to buy low and sell high and the Dow is dominated by large institutional buyers who keep the Dow oscillating to claw additional gains beyond those you get from buying and holding. The Dow may be near its bottom and ready to buy.

Low interest rates allow home ownership and the opportunity to add to net worth. China may lose even more manufacturing jobs if the coronavirus continues to disrupt their manufacturing centers.

Dow 2020 Average Closing listed below.
2/27/20   25759.69
2/26/20   26957.59
2/25/20   27081.36
2/24/20   27960.80
2/21/20   28992.41
2/20/20   29218.98
2/19/20   29348.03
2/18/20   29232.19
2/14/20   29398.08
2/13/20   29423.31
2/12/20   29551.42
2/11/20   29276.34
2/10/20   29276.82
2/7/20     29102.51
2/6/20     29379.77
2/5/20     29280.85
2/4/20     28807.63
2/3/20     28399.81
1/30/20   28859.44
1/29/20   28734.45
1/28/20   28772.85
1/27/20   28535.80
1/24/20   28989.73
1/23/20   29160.09
1/22/20   29186.27
1/21/20   29196.04
1/17/20   29348.10
1/16/20   29297.64
1/15/20   29030.22
1/14/20   28939.67
1/13/20   28907.05
1/10/20   28823.77 
1/9/20     28956.90
1/8/20     28745.09
1/7/20     28583.68
1/6/20     28703.38
1/3/20     28634.88
1/2/20     28868.80


The 30 Companies in the Dow Average do have weaknesses that should affect their value, but the Dow is more based on demand and “representation” in the US economy. The Dow includes products and services that are absolutely necessary like food, shelter, toilet paper, tools, energy, transportation and electronic systems, but also includes over-subsidized industries like healthcare and unnecessary products like entertainment, recreation, fast food, soft drinks, internet and I-Phones.

Dow Companies are listed below.



Norb Leahy, Dunwoody GA Tea Party Leader

No comments: