Different River

”You can never step in the same river twice.” –Heraclitus

May 4, 2006

The Dow Reaches Zero Return

Filed under: — Different River @ 2:30 pm

Well, that’s my financially cynical take, anyway:

Ron Scherer writes in the Christian Science Monitor:

Six years later, the Dow is back

Propelled by the economy, the Dow is nearing its all-time high of 11,723 from 2000.

By Ron Scherer | Staff writer of The Christian Science Monitor

NEW YORK – Without much fanfare, the Dow Jones Industrial Average is closing in on its all-time high, set at the beginning of 2000 before Americans became disenchanted with stocks and turned to real estate.

So the Dow is reaching it’s all-time high. This means that if you bought stock according to the Dow in January 2000, you are now back to where you started. You have had a zero rate of return over the last six years –which is really a loss, since that zero doesn’t account for inflation. Inflation is not too high these days, but after six years, even a small amount can add up. That 0% “gain” on the Dow is really, after inflation, a 13.8% loss!

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The Dow Reaches Zero Return

Filed under: — Different River @ 2:30 pm

Well, that’s my financially cynical take, anyway:

Ron Scherer writes in the Christian Science Monitor:

Six years later, the Dow is back

Propelled by the economy, the Dow is nearing its all-time high of 11,723 from 2000.

By Ron Scherer | Staff writer of The Christian Science Monitor

NEW YORK – Without much fanfare, the Dow Jones Industrial Average is closing in on its all-time high, set at the beginning of 2000 before Americans became disenchanted with stocks and turned to real estate.

So the Dow is reaching its all-time high, achieved in January 2000. This means that if you bought stock according to the Dow in January 2000, you are now back to where you started. You have had a zero rate of return over the last six years –which is really a loss, since that zero doesn’t account for inflation. Inflation is not too high these days, but after six years, even a small amount can add up. That 0% “gain” on the Dow is really, after inflation, a 13.8% loss!

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