Once again, the Dow Jones has tumbled back towards 10,000 having failed to escape this level. Here are some quiz questions:
1. Can you remember when it first hit 10,000
2. On how many separate days has it traded THROUGH 10,000 – that is, had a High above that level and a Low below that level
3. Given (1) how do you feel about investing in equities for the long run
4. Given (3) how confident do you feel that the equity markets will provide lots of capital for the future?
Answers ‘below the fold’
1. It was March 1999
2. 165 times! Look at this chart
4. Uneasy. We need people to feel good about taking risks if we want economic growth. though some may reason that this diverts money from ‘pointless’ speculation to real investment, actually you need both – you want people to see a big market to sell their ‘real’ investments into later. Having no happy secondary market undermines the primary stuff.