DJIA ends at 28,491.
Everyone else is jumping for Joy at the DJIA number and I’m going oh no…….
Is this a false positive?
The increase is great since I have a retirement account but…. a little too fast for me. Twenty- two 22% in one year. The last time we had such a big gain was 2012 to 2013.
First of all, I am not a stock broker or financial advisor, any comments made are just observations and not advice.
Let’s talk about false positive or a false negative. It happens in the medical profession when test results for Lyme disease test come back negative but the patient really has the disease. I just hope the market isn’t having a false positive. What is causing this positive growth? In my opinion, faith. Faith, we believe that businesses are doing well. I believe I few large businesses are doing well on the back of low paying part-time employees not having any employee benefits. Many Americans wanted the US to go back in time. Well, maybe we did. Times where corporations make big profits at the expense and abuse of employees. Where rich people who own stock are doing well.
Time for our History recap. I believe it is best to look at the stock market in years instead of days.
DJIA | DJIA | ||
2010 | 11,577 | 2014 | 17,823 |
2011 | 12,218 | 2015 | 17,425 |
2012 | 13,105 | 2016 | 19,942 |
2013 | 16,577 | 2017 | 24,824 |
2018 | 23,327 | ||
2019 | 28,491 |
2010 | Change | Change | |
2011 | 5.5% | 2014 | 7% |
2012 | 7.26% | 2015 | -0.36% |
2013 | 21% | 2016 | 14% |
2017 | 14% | ||
2018 | -6% | ||
2019 | 22% | ||
I hope you have been following my observations.
The stock market has always been and always will be a roller coaster. You have to know when to jump out and when to get in. Jump out when it is high and reap your gains and get in at the low before the stock price climbs. Unfortunately, the stock market is not predictable like an amusement park roller coaster. This roller coaster requires a crystal ball that I do not own. Let’s see what happens is 2020. It’s a nice number. I hope everyone has a great year.
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