the problem with just looking at the post-9/11 post recession recoevry of the dow is that its short term thinking. Had the dow dropped to 2,000, then rebounded back to 4,000, jen would probably declare it a victory (its more than doubled its value!). looking at the picture long-term, it would be a disaster. long-term views lead to different conclusions:
historically the dow averages 9% growth. from the peak of the bull market of the 90s (11700), the dow has done horribly. its grown 1% in the LAST EIGHT YEARS.
Now part of that is a natural corection to an artifical run-up during the 90’s. but as NCS pointed out, there are fundamentals of the econonmy that are troubling. if we want to look short-term, as Jen likes to:
DOW near end of 2003: 11,000
DOW near end of 2007: 13,000
16% growth over a 4 year period. well below the historic 9% growth rate per year.
and the dow is only one component of the picyture. Median income still hasn’t recoverd from 1999. thats far more telling than how the corporate world is doing. offhand, I cant think of a time period where median income has been stagnant for such a long period of time (8 years). maybe during the late 70’s-early 80’s? that is troubling for a consumer driven economy like ours, with housing collapsing and gas skyrocketing.
Balung, youre 22. I was voting for Reagan before you were born. grow a little chest hair before you question my belifs.
As a side note, isnt intetersting how everyone on the internet is as good as Warren Buffet, but in real life most people carry thousands in credit card debt and cant balance a checkbook? funny how that is.