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Sorry, But Dow 40,000 Isn’t Worth Celebrating

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Posted By: RockyTCB, 5/20/2024 8:59:59 AM

The headline in the Wall Street Journal typifies the reaction to the Dow Jones Industrial Average closing above 40,000 for the first time in its history — “Dow at 40000 Is Welcome News for President Biden.” The Journal calls it “the latest sign the economy has shrugged off the threat of recession,” and says it’s “welcome news for President Biden, whose approval — and re-election prospects — are being held down by public dissatisfaction with the economy …. The Dow is up nearly 30% since Biden was inaugurated in January 2021. That is slightly higher than where the Dow was at the same

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Reply 1 - Posted by: mifla 5/20/2024 9:03:38 AM (No. 1721250)
They celebrated in 1929, until October.
21 people like this.

Reply 2 - Posted by: triggerberg 5/20/2024 9:05:25 AM (No. 1721253)
I remember when the Dow hit 1000 the first time. That was a big deal. This? Not so much.
9 people like this.

Reply 3 - Posted by: Wetenschapper 5/20/2024 9:12:19 AM (No. 1721257)
The article is exactly right. In the last five years, the Dow has added 84%. Gold has increased 89%. Neither has added any real purchasing-power value- gold is still gold; the Dow still represents its net asset value. It's only the dollar buying these things that has shrunk.
18 people like this.

Reply 4 - Posted by: franq 5/20/2024 9:20:54 AM (No. 1721264)
Exactly. It's like celebrating a $6 bag of Doritos, or an $8 Big Mac. Inflation. Hello!!!! Anybody home???? Think, McFly!!!!
25 people like this.

Reply 5 - Posted by: Alecto2 5/20/2024 9:36:51 AM (No. 1721285)
Too parochial. The DJIA is where world's big money hides out in times of trouble.
10 people like this.

Reply 6 - Posted by: JackBurton 5/20/2024 9:50:09 AM (No. 1721301)
i posted this elsewhere. In the 80s, after the inflation of the 70s, it was important to have an annual 'inflation deflator' number that allowed you to accurately calculate the real growth and growth rate of companies or the economy. Over the years, that has been made irrelevant by good handling of the economy. But, here are some numbers. 2020, the covid year, saw GDP of $25.5 Trillion. 2023, third year of biden, saw GDP of $27.4 Trillion. that's a 7.3% increase. At a time when there was 19% inflation. It's like we've been in a three year recession.
19 people like this.

Reply 7 - Posted by: Hazymac 5/20/2024 10:00:49 AM (No. 1721308)
Precisely correct. Both the Dow level and the inflation rate reflect the unwarranted increase in the money supply. That money has to go somewhere. For historical perspective, the DJIA first hit 1000 in 1966, then declined. The next time it hit 1000 was in 1982. 40000 on the DJIA doesn't really thrill me, either. Where's the top? I don't know and you don't know. Investors Business Daily is a more reliable publication than the Wall Street Journal (Issues & Insights was IBD's editorial page). This LDotter was a Series 7 and Series 63 General Securities Registered Representative (stockbroker) who has read the Wall Street Journal for over fifty years, and I can attest that in overall leftish slant of reporting, the WSJ--their editorial page is basically conservative--is possibly worse than the New York Times. Kim Strassel is one of my favorite writers, but the Journal doesn't have enough like her, especially among their reporters.
8 people like this.

Reply 8 - Posted by: SilkCity 5/20/2024 10:08:28 AM (No. 1721313)
Kim S is an ace, the rest at the WSJ, elite jokers
7 people like this.

Reply 9 - Posted by: Mizz Fixxit 5/20/2024 10:30:27 AM (No. 1721325)
The Dow. Where the big boys stir the pot. And if the little guy starts to make real money, it is time to get out.
3 people like this.

Reply 10 - Posted by: reefdiver 5/20/2024 11:01:07 AM (No. 1721337)
I worry more about the national debt than the DOW. 1 $trillion increase in debt every 3 months?
5 people like this.

Reply 11 - Posted by: DVC 5/20/2024 11:04:55 AM (No. 1721339)
Trump's 28% increase was REAL, wiht a 1-2% rate of inflation. Joe's 32% is as phony as everything else in this hideous, destructive mess. It's basically treading water...which is OK for those in the market, because everything else LOST 28%. So, "Dow up 32% is really "Dow adjusts for inflation".
12 people like this.

Reply 12 - Posted by: smokincol 5/20/2024 3:05:05 PM (No. 1721494)
I'm surprised it's even at 40 thousand
1 person likes this.

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