Dow 10 Thou?
With the recent collapse of the stock market, it has brought back memories of when the DJIA first eclipsed the 10,000 mark. The Dow is not the end all be all of market indicators, but it does encompass 30 of the largest U.S. companies by market cap and works as a pretty good proxy for the rest of the market.
That being said, the Dow first hit 10,000 on March 29th, 1999, my Junior year of college. This occurred more than twelve years ago, and looks to be re-approaching that mark from the opposite direction. As of close of business today it sat at a mere 10,811. This is a total return of 8.11% in 12+ years. Assuming a daily rate (since that is the alternative in a savings vehicle), the DJIA, in all of its infinite glory, has returned an annual rate of 0.66% since that time. My savings account is currently paying 1.0%. So with no risk, no heartburn, and no fees paid to “expert” investment analysts and portfolio managers (albeit lower fees for index funds), my savings account has outperformed the blue chip companies of this great nation. Okay, a savings account isn’t as fun and exciting as the stock market is portrayed to be by the MSM, but at the end of the day I’ll take ROI over fun. I’m still keeping my fingers crossed that my investments in the U.S. stock market will recover in time for my retirement in 30 years or so. In the mean time, I’m still looking for a worthy place to put my good ole’ U.S. fiat dollars before they are better served as kindling for my fireplace.Explore posts in the same categories: Economic, National