Thursday, September 11, 2008

Dow Jones Industrial Index Analysis (2000 vs. 2005)

This is a historical analysis of the Dow Jones Industrial Index during years 2000 and 2005. These were taken from a pdf I made that compared news stories from both years when the Dow Jones Industrial Index were in the 11,000 range. It's interesting to compare this to now where the Dow is close to the 11,000 level and that the index hasn't really increased in value for 10 years! Click on image to zoom in.


The Stock Speculator said...

Very interesting article. It's easy to forget how cheap & different things were only 8 years ago: gold @ 250/oz and oil @ 10bbl, a tech bubble in its last sprint, the housing bubble in its formative years.

Now, here we are 8 years later and the DOW hasn't done a thing. It's been a lost decade.

Distressed Volatility said...

yea the lost decade is right. I looked at the 25 yr chart and it looks like the dow increased about 6x from 1990 - 2000 (2000 to 12000). Looking at a trend with the lows of 1994 and 2002 the line reaches to the low-mid 10,000s today. It's weird because the dow doubled and then tripled in 10 years following the 87 crash leading to the tech boom and it lost about 30% in the '02 recession, that's nothing really. If I use the solid trend post 87 crash through 1994 before the big tech run up, today we'd be at 8000.