The answer to yesterday’s question. It’s roughly where the DJIA would need to be today in order to have achieved an 8% annual growth rate from its peak in May of 2008 (just a little over 13,000). I bring this up as there was a lot of excitement over the Dow’s breaking into and closing above 13,000 yesterday, but we’ve been there before, we’ve fallen, and now we’re back…4 years later. In case you missed it, that number is 17,581.9 or about 4576 above where we closed yesterday.
I don’t intend this to be an Us vs. Them statement that shuns stocks. Simply a way to keep things in perspective and note that risk associated with what a lot of financial advisers have treated as the common practice (being an “investor”). Also, it’s a reminder that we are no where near territory where we should feel comfortable celebrating. There’s still plenty of lost ground we, as an economy, need to recover.
So the Dow closed over 13,000. Big deal. Call me when it’s over 18,000. Now that would be something exciting. However, only if it happens this year. Fingers crossed.