DJIA: Where Did It Go?

[Back]

Um, yeah. I’m not an economics major nor do I work on Wall Street. I’m just an average person wondering what to make of all of it. And this seems like a decent topic for discussion.


So back in May of last year the DJIA was topping out over 13k. Now its barely over 8k.

What happened to the 5K? And can anyone give a reasonable estimate of how much money that is?


This is extremely oversimplified but...

DJIA is calculated on an average of the stock prices of 30 companies.

Stock prices go up when people buy and down when people sell.

Where did all that money go?

[Lucas]

I'm fairly certain (80%) the dow won't go below the high 7000's (est. 7800-7900) the resistance is very high at around this level. Personally, the S&P 500 is a better indicator imho. The nasdaq for technology/science stocks.

[Revalos]

http://www.dogsofthedow.com/dow-1925cpi-log.gif

The money didn't go anywhere, they just printed more of it. Hurray for adjusting for inflation.

Seriously, don't worry about it until it drops close to 7000. If it gets down there, we have ourselves a depression for the next decade. If it can stay around 7500+, we'll just have a multi-year recession.