Tell Me What You See

The Dow opened the 20th century trading at 68. It closed at 11,497, a 16,875% increase, which explodes to 1.8 million percent with dividends.

But of course nobody got these returns, and the ones that achieved even a fraction of them had to endure unthinkable pain along the way. Consider that:

  • The low in 1932 was the lowest prices of the 20th century. Stock prices were lower in 1932 than they were in 1900.
  • In 1974, stocks were trading at the same levels as they were the winter of 1958.
  • The Dow was lower in 2009 than it was in Halloween of 1996.

Look at the chart below and tell me what you see (H/t the data lord. Don’t actually tell me, that was just a figure of speech).

How we approach the market is more a reflection of our personality than anything else. Some people view this chart as a reason to be hopeful, others see it as a reason to always be cautious. Both views are justified.

I see it as a reason to be optimistic yet realistic and everything in between.

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References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

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