Dow Jones indicator of wealth in the USA
The Dow Jones Industrial Average (DJIA often referred to easily as The Dow) is loosely
a sort of measure of how properly the country is doing financially. At the very least that is what most individuals think. It's really one of the measures along with the NASDAQ and the S & P 500 (500 largest corporations). None of them are ACTUALLY good indicators of how well the country is doing!
It may possibly all sound very complicated, but for this discussion, let's ASSUME the Dow Jones IS indeed a measure of the "wealth" in the united statesA. When you don't comply with these things every day, that is not a problem, because I feel you will still get a larger understanding of what is going on on in our financial system (of which you're part) and it will show you how to within the near future by supplying you with the chance to organize yourself.
Try this: open another tab in your browser and go to msn.com. (or some other source to see an extended-term view of the Dow Jones Industrial Common).
Scroll down and on the appropriate click on the phrase 'Dow' above NASDAQ and S&P.
On the suitable there's a graph known as '$INDU Intraday Chart'; at the bottom are some figures like this:
5d 1m 3m 1y 5yr 10y; these simply stand for five day, 1 month, three month, 1 year, 5 years and 10 years
Click on the 10y link.
Finally, on the top of this new graph, subsequent to the 10y tab, can be a tab called 'Max'. Click that.
Now you can see what is definitely an entire graph displaying the DOW JONES index since simply earlier than the GREAT DEPRESSION in 1929. See what happened from about 1985? Where did all this great "wealth" come from? The place did all of it go?
So, the Dow has "lost" over 7,000 "factors" in the previous few months. It will probably nonetheless go down a LOT further. Why? BECAUSE IT WAS NEVER THERE IN THE FIRST PLACE! "What?". Have a look at the graph again.
NOTHING REALLY HAPPENED to make the financial system boom within the late 1980's. No fantastical new innovations; no sudden tremendous-sturdy work-ethic gripped the nation; no new mega-deposits of minerals have been discovered within the U.S. in effect NOTHING occurred; nothing REAL anyway. Only a entire lot of speculation (i.e. playing) by lots of inexperienced and/or greedy people.
As you may as well see on the graph, Black Monday in 1987 was a mere BLIP compared to what's occurring in 2008/2009.
When you draw a line on the graph from 1945 (end of the second world battle) to 1985 after which proceed the road straight-on to current day, what stage does the line cross? Round about 2,000. WHAT??? Yep, around 2,000 points. Is that scary or what? Properly, yes and no.
It COULD go right down to around this determine, which would be the figure that the financial system SHOULD have grown to, had the skilled managers of the country over the past 25 years been somewhat extra "expert" than they were.
Yes, as a result of many more firms will go bust and pensions will likely be price loads less than the house owners thought they have been value in mid 2008.
No, because of the next: the DIGITS in your checking account (or pension account) and the items of paper in your pockets (or below the mattress) are simply that...pieces of paper or electrons whizzing round a computer.
Which means EVERYTHING ELSE is just the identical because it was BEFORE the stock-market crash. There are the identical quantity of people (give or take), the same quantity of ability, the identical amount of raw materials, the same quantity of EVERYTHING.
The ONLY factor that has modified is the MAKE BELIEVE stuff; that's, the administration system that was being used to manage the
dow jones today.
This is not a case of deciding whether or not or not the system that governs the money circulate SHOULD change, it is INEVITABLE that it WILL change, because it's utterly out of control. This has happened before, and it'll happen again. All that we're seeing now's a HUGE market adjustment. It's adjusting to what it SHOULD be at.
Nonetheless, simply because the system will change, does not necessarily mean it is going to change for the better. However change, it will.
Whereas things are going to get a LOT uglier out there over the coming years, understand that you CAN do things to guard your self and your loved ones. It is a matter of adapting. This has been the way in which of the world because it all began.
You'll need to study new skills and be ready to get right into a behavior of ongoing learning. The world is changing and to survive, and indeed prosper, you'll have to change with it. So keep reading, continue learning and keep on keeping-on.
The only time you'll fail is once you quit. NEVER QUIT!
Dow Jones indicator of wealth in the USA
By: Emmanuel Moreto
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