12/31/2015 blog

MY ANNUAL COMMENTS ON THE DJIA The Dow Jones Industrial Average. First of all I am not a stock broker so these comments are just observations and not advice. I hope this analysis is refreshing and different from financial analyst. There are many articles asking why the stock market analyst got it wrong for year 2015.

(If you read my earlier blogs I ask people to not get excited by high and lows of the stock market.) A slow growth is better for the economy on the whole. The basis for my comment is that most of the previous highs were artificially stimulated by the fraudulent misrepresentation of corporate financial statements. So while all the stock market analyst are saying, “US stocks post worst annual losses since 2008” Wall Street Journal. I hate sensationalism. I’m saying thank goodness. Our economy is reaching a state of stability instead of volatility.

2010 DJIA was 11,577, 2011 DJIA was 12,218, 2012 DJIA was 13,105, 2013 DJIA is 16,577. 12/31/2014 17,823, 12/31/2015 17,425.

As you can see the DJIA is slightly down from last year 17823 to 17,425 this year.

Since the numbers have gotten so high, it is better to look at the % of change.

From 2010 to 2011 5.5% change, from 2011 to 2012 7.26%, from 2012 to 2013 21% change, from 2013 to 2014 7% change. From 2014 to 2015 .36% down.

Not only did the growth slow down. It flat lined and I am happy.

The Dow did hit 18,000 but ended the year below 18,000.

Remember my warning that the DJIA shouldn’t double in 10 years.