DJIA drops to 10,953! Ahhh! OMG! OMG! OMG!

When I was born the Dow hovered around 134, much lower than the high of 381 five years earlier.  (You think I dropped a zero?  Guess again.  LOL!)  The Dow first hit 10,000 early 1999. By mid-2002 it was back down to 7,592.  Five years later it peaked at 13,930.  Did it make sense to you that it went that high after correcting to 7,592?  How awful that it fell again to 7,063 in early 2009!  Well, later that same year it was back up to 10,000…and I said, “I hope it stays at or under 10,000 –  because that is, at most, what those DJIA companies are worth.”  Why did it go back up to 12,810 this year? Because investors – of all sizes – play the stock markets as though they are so many casino tables.  It matters not to us what the companies are truly worth today; we’re betting on the come.  Are we betting against the house?  You bet.  But WE ARE the house – you, me, Bill and Warren.  Why do stock markets exist then?   To amuse ourselves Vegas style?

About Steve Link

In Namibia with the U.S. Peace Corps July 2014 - July 2016. View all posts by Steve Link

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