When you really do the math with these new Dow numbers you realize that even if you bought the Dow at the absolute bottom you're still down a great deal versus the price of gold and/or a basket of currencies versus the Dollar Index.
For example, if you bought the Dow in February 2002 you are still down 14% versus the Dollar Index. Why? Because since that time the dollar is down 30%.
If you measure your performance against that famous yellow metal you're getting positively hammered, as the Dow has lost 65% of its value versus gold's lows in 1998.
Betcha $10 you won't hear this on Kudlow tonight, because they want you to think you are rich. In all actuality you're probably much closer to broke than you know it, even if you do listen to Dave Ramsey.
Sorry to be such a pessimist.
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Comments: 7
Please, continue speaking the truth, no matter how much it may bring discomfort.
The economic truth is that Americans are now making less money than in 2000, the dollar buys less than in 2000, and the savings rate has been negative (meaning people have been borrowing against savings to stay afloat) for the past 21 months.
But then again, that sounds like this Republican government....so why would we be surprised?
An inverted yeild curve does not ALWAYS lead to a recession.
We have not had a recession without an inverted yeild curve, but about half of the inverted ueild curves HAVE NOT been the start of a recession.
When you say you 'bought the dow in Feb 2002' what do you mean, that you bought an index fund? Or maybe some shares of DIA? Both are managed, and do not mirror the idex perfectly. And then there is fees, etc to account for.
The Dow is simply an indicator, nothing more. To imbue it with magical or political power is just plain ingnorant.
Second, I didn't say I bought the Dow. I said, "if you bought the Dow." And I was inferring the purchase of an option on the Dow Diamonds. That's what I use when I "buy the Dow," which is a short-hand term for buying an index option. What do you call it? BTW: index options don;t have any fees, but they are a wasting asset.
And who is imbuing the Dow with political power? No one brought it up. You are assuming way too much.
Go back and read the substance of my post. If you want me to provide specific dates and prices I will be more than happy to do so. But first, please re-read my entire post and try not to assume too much.