or, How The Financial Press Lies With Numbers
The Dow Jones Industrial Average just hit a “milestone” by passing 14,000. Great, right?
Not so fast (I have assumed that the Euro has remained basically stable. Not a very risky assumption. It has. The St. Louis Federal Reserve uses it as a baseline as well.)
[CHART]
US Dollar expressed as one Euro:
1.3785 (2007-07-16 exchange rate)
1 USD = 1 Euro January 1, 2000
multiplier = .725426
(1.0 divided by 1.3785)
2007 Dow Jones @ 14,000 expressed in Jan 1, 2000 dollars = 10,155.97
Dow Jones record high 11,750.28 (January 14, 2000)
Shortfall in 2000 dollars = 1594.31
Shortfall in 2007 dollars = 2197.76
To get BACK to Jan 14, 2000′s record high, the Dow Jones Average (Industrials)…
… will have to reach 16,197.76
Courage.
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Hart
Is this like the Tao of the Dow?
Perhaps, but “the Tao of the Dow” title saeems to be owned by someone named “Scrooge McDuck.” The details aren’t entirely clear.