Dow Breaks 12K

PlayadelSoul · 10-18-2006

Went home for lunch, and saw that the Dow had climbed over the 12,000 mark. Good to know that my little bit of an investment in the US economy is on a roll. God bless GW and tax cuts. Come to think of it, God bless JFK, as well. That was one right thinking Democrat when it came to the economy.

You can list all of the reasons why the stock market's boom isn't GW's, but if you are going to blame him for things that happen on his watch, you have to give kudos, as well.

Icon oclast · 10-18-2006

The US economy just keeps rolling along. Every year my loved ones and myself become more prosperous. What a great country. Thanks GW.

Jacko · 10-18-2006

Now this is certainly good, but it would be much better if only the U.S. dollar had not lost 30% of its value over the same time period as the rise in the Dow (From 2003). If you put that back into the equation, the Dow would have to be over 15000 to reach a 5 year high.

From this source (I am not a stock analyst, so if anyone can refute this, let me know)

Finally let's take a look at the Dow. We notice that it appears to have put in a new 5 year high but this high is illusory as the Dollar has lost up to 30% of its value in the same time period. Another key factor to remember is that the Dollar itself topped out in 1986 when it was trading at a level of 129 on the USD index; it has never been able to trade to this level again. The highest it got to was to the 120 levels and this took place in 2001 and 2002. But the Dow compensated for this drop in currency value by rising twice as fast as the currency was being devalued. In 1986 the Dow was trading in the 1400-1900 ranges and it never really ever traded at those levels again. From 1986 to 2000 the dollar lost approximately 18% of its value yet in the same time frame the Dow gained almost 600%.

Ronaldo · 10-18-2006

The NASDAQ is still down 53.7% from its high and the S&P 500 is down 10.6%from its high.

DavidB · 10-18-2006

Only 10 of the 30 dow stocks are higher then they were in 2000.

**james** · 10-18-2006

yeah, the decrease in the value of the greenback is majorly offsetting to this.

Seakony · 10-18-2006

I remember when I only got 3 pesos to the dollar...no complaints from me. And my IRA's took a beating in the 90's. I now feel secure enough to start investing in them again now that I got my losses back plus profits.

**james** · 10-18-2006

Quote:

Originally Posted by Seakony

I remember when I only got 3 pesos to the dollar...

unfortunately it only gets you about 80 Euro cents.

10-18-2006	#1 (permalink)
PlayadelSoul Registered User Join Date: May 2005 Location: We'll know when we get there, We'll find mercy Posts: 8,965	Dow Breaks 12K Went home for lunch, and saw that the Dow had climbed over the 12,000 mark. Good to know that my little bit of an investment in the US economy is on a roll. God bless GW and tax cuts. Come to think of it, God bless JFK, as well. That was one right thinking Democrat when it came to the economy. You can list all of the reasons why the stock market's boom isn't GW's, but if you are going to blame him for things that happen on his watch, you have to give kudos, as well.

10-18-2006	#6 (permalink)
james beach geek admin Join Date: Apr 2001 Location: 10 year Playa resident lost in Kullavik, Sweden Posts: 9,905	yeah, the decrease in the value of the greenback is majorly offsetting to this. __________________ Get your own signature countdown image!

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10-18-2006	#2 (permalink)
Icon oclast reposado Join Date: Dec 2005 Posts: 1,024	The US economy just keeps rolling along. Every year my loved ones and myself become more prosperous. What a great country. Thanks GW.

10-18-2006	#3 (permalink)
Jacko añejo Join Date: Dec 2004 Posts: 18,806	Now this is certainly good, but it would be much better if only the U.S. dollar had not lost 30% of its value over the same time period as the rise in the Dow (From 2003). If you put that back into the equation, the Dow would have to be over 15000 to reach a 5 year high. From this source (I am not a stock analyst, so if anyone can refute this, let me know) Finally let's take a look at the Dow. We notice that it appears to have put in a new 5 year high but this high is illusory as the Dollar has lost up to 30% of its value in the same time period. Another key factor to remember is that the Dollar itself topped out in 1986 when it was trading at a level of 129 on the USD index; it has never been able to trade to this level again. The highest it got to was to the 120 levels and this took place in 2001 and 2002. But the Dow compensated for this drop in currency value by rising twice as fast as the currency was being devalued. In 1986 the Dow was trading in the 1400-1900 ranges and it never really ever traded at those levels again. From 1986 to 2000 the dollar lost approximately 18% of its value yet in the same time frame the Dow gained almost 600%.

10-18-2006	#4 (permalink)
Ronaldo beachaholic Join Date: Oct 2005 Location: Twin Cities, MN Posts: 305	The NASDAQ is still down 53.7% from its high and the S&P 500 is down 10.6%from its high.

10-18-2006	#5 (permalink)
DavidB añejo Join Date: Oct 2003 Location: Mid Mich Posts: 2,811	Only 10 of the 30 dow stocks are higher then they were in 2000.

10-18-2006	#7 (permalink)
Seakony añejo Join Date: Aug 2003 Location: no longer in Mesquite with nothing to do Posts: 10,149	I remember when I only got 3 pesos to the dollar...no complaints from me. And my IRA's took a beating in the 90's. I now feel secure enough to start investing in them again now that I got my losses back plus profits.

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