Category: Money tips Release Date: 2007-04-29
May 26, 1896, Dow Jones & Company for the first time calculated and announced by the Dow Jones Industrial Average (DJIA, which is known descendants of the "Dow"), the date of index 40.94. The Dow Jones Industrial Average is the world's most important and most influential stock price index. Than 100 years, the Dow with its unique method of calculation for patents, in order to first-class blue chips as the samples to an indomitable spirit, from the calculation of guaranteed uninterrupted Dow hundred years of consistency and comparability. This is the Tao means "immortality," the secret lies. The Dow over the past century came the "road" not only reflects its own vitality and a strong contemporary at the same time, it is more of historical value to record a century of U.S. stock market history, for research and posterity思�
1, 30 the Great Depression, "eat" Dow 33 years of "accumulation"
May 26, 1896, the Dow (DJIA) from 40.94 points, a difficult start. After 30 years of ups and downs, the Dow slow "growth." September 3, 1929, the Dow closed at a record high points are 381 points. In the meantime, the U.S. stock market has experienced the U.S. overseas military expansion, World War I, Coolidge prosperity, the three "good" stage, this period is also the United States to the world supremacy of the important turning point. Therefore, at this stage, the U.S. stock market bon voyage, from 40 points to close to 400 points, the Dow went 33 years.
Situation improves, joy turning to sorrow. While the American people, being immersed in the prosperity and happiness, when unable to extricate themselves, a rare in history is quietly approaching a major crisis the American people. October 28, 1929, U.S. Eastern Time on Monday, opened the morning shortly after the Dow plunged more than on that day to close at 260 points, Japan has fallen by 12.82%. This is the Americans will lose heart and the "Black Monday." It is this as a fuse, beginning the prelude to the Great Depression of 30 years worldwide.
The next day (October 29), with the Dow plunged a further 11.73 percent, to close at 230 points. Subsequently, with the Dow 1929 - 1933 more than the Great Depression all the way down, has been down to June 30, 1932 43 points, closing.
From the 40 point of view, 33 years rose to 400 points in the vicinity, and then only two and a half will plunge to the "origin." Future generations, also known as the "big crash." Great stock market crash, the Great Depression, so that the wealthiest Americans almost overnight become the "poor wretch." Now think about it, vaguely dream.
Second, re-cast the cornerstone: 40 years later, the Dow first broke 1,000 points
The 20th century, 30 years after the Great Depression, Americans from the "laissez faire" blind confidence in the wake re-examine the need for the rule of law and the macro-control. As the saying goes "once bitten, twice shy." Unforgettable the Great Depression, the "pain" Let the Americans went to the other extreme: on the financial industry to adopt the most stringent controls, the benefits of doing so: the high-risk financial sector, especially for tight control over the securities market will help inhibit financial speculation, inhibit financial bubbles are conducive to consolidation of the financial order, so as to effectively control the financial risks.
On the other hand, the successful implementation of Roosevelt's New Deal and the Second World War, the United States been able to "profit" so that the United States as a true, absolute overlord of the world, and the economic strength and military strength of synchronization increased. From the early 50s, the U.S. economy is completely out of the "Great Depression" in the shadow of 60 years and then entered into the world's capitalist countries in the development of a "golden period."
As the U.S. economy, all the best, as an economic barometer of the Dow also be up. May 12, 1956, the Dow's 500-point mark for the first break. From the Dow's birthday date, from 40 points to 500 points, the Dow went a full 60 years. This should be regarded as the Dow 60 years of suffering 60 years, through ups and downs of its twists and turns it from birth to death, then rebirth. The tortuous process also taught the Americans how to look at speculation, how to be responsible for their speculation. Of course, the most important is that it will introduce a strict U.S. stock market "rule of law" of the Road.
60's "golden years" will bring the U.S. economy to a new climax. The climax is a sign of the end of November 14, 1972, the Dow broke 1,000 points in the first. This is the Dow's first "1000 points", from the Great Depression of the 43-point date, it took a full 40 years beyond its first "1000 points" mark; if the birth date from the Dow, it is It took 76 years to capture the 1000-point mark. This shows that this is indeed the cornerstone of a thousand points, a solid enough.
However, the cyclical fluctuation of inexorable law of the market economy. After World War II, the U.S. economy after more than 20 years of rapid growth, the economic bubble and inflation have accumulated to a considerable extent. It's time to stop breathing time, so, from the early 70s, the U.S. economy has now entered an unprecedented "stagflation" period. To do this, just thousands of points near the Dow plummeted again facing a huge challenge. In late 1974, early 1975, the Dow plunged 550 points, once the top, almost eaten since 1956, victories. Fortunately, since the Great Depression, the U.S. stock market has been in tight control of the state, the bubble and risk can be successfully resolved faster.
The end of 1976, the Dow back to 1000 points. However, as the U.S. economy has not really improved, therefore, the Dow quickly returned to below 1000 points, from 1977 - In 1982, the five-year period, the Dow has 800 points above 1000 points, finishing below to narrow . From 1972 - In 1982, the 10-year period, in addition to the turn of 1974 and 1975 there was a short drop, the rest of the time were maintained at 800 points or more to run, this should be proved once again that the U.S. stock market because of strict "rule of law" under the effectiveness.
3, the second "Black Monday" the test of the Dow: scare
In 1982, the U.S. economy gradually out of the "stagflation" in the shadow of the national economic climate index started to rise. When the end of the year, the Dow once again firmly stand on the 1000-point mark. By the end of 1985, the Dow broke through 1,500 points. From 1000 points to 1500 points across, the Dow took 13 years. Then all the way to continue to soar, January 8, 1987, the Dow first broke 2000-point mark.
October 19, 1987, but also a "Black Monday", the day the Dow plunged 508 points, Japan has fallen by 22.61 percent, the Dow closed the previous day's close of 2246.74 points, fell to 1738.74 points. The Pai-day drop in the Dow, the second highest ever. U.S. outbreak of this "stock market crash", but also triggered a global stock market crash simultaneously. But the end of the year, the Dow has regained 2,000 points.
This time, the stock market crash of near misses, should mainly be attributed to three factors:
First, the U.S. economy's rapid recovery and growth, as well as the international economic situation for the better.
Second, the early control of the effectiveness of the U.S. stock market. The Dow took 76 years in 1000 has always been below the "bottoming", firmly consolidating the cornerstone of the United States would not fall in the stock market building was a major reason. The Dow, after the first break point of 1000, only two back to exploration of the records; 1500 points is a one-time passed, there has never been any repeated; 2000 points, also only in 1987 and 1988, there have been two short-term repeated. This is the U.S. stock market "mature" sign, and also the low-risk U.S. stock market performance.
Third, the U.S. stock market listed companies (including those from the world's leading enterprises) strength has shrunk, leading listed companies must be first-class investment value. Therefore, a large number of world-class companies, it is the backbone of the U.S. stock market, they are good enough to resolve the investment value of the stock market bubble and speculative risk.
The late 80s, the Dow continued its upward trend. It should be said, the Dow and the U.S. stock market growth and continue to grow together, this not only due to the success of market regulation, the main reason is the leading listed companies, first-class investment value to investors and the stock market to share the prosperity of the national economy and growth.
4, the growth in "new economy" will be sent the Dow up channel
Since the 20th century, early 90s, as the "Internet Age + knowledge economy" driven the U.S. economy has entered a more than 100 months of continuous growth, which is rarely seen in American history a "long cycle" of economic growth. With the U.S. economy is climbing, the Dow undertake the late 80s hair force of inertia to continue to keep clearance.
April 17, 1991, the Dow first broke 3000 points; February 23, 1995, the Dow first broke 4000 points; November 21, 1995, the Dow first broke 5000 points; October 14, 1996, Road 6000 refers to the breaking point; February 13, 1997, the Dow first broke 7000 points; July 16, 1997, the Dow first broke 8000 points; April 6, 1998, the Dow first broke 9000 points; 1999 March 29, the Dow first broke 10,000-point mark. January 14, 2000, the Dow hit a record high record 11723 points.
As of 2001, "911" occurred before the Dow rose to 10,000 from 3,000 points along the way point on, during which the various "1000 points" integer mark, are a one-time passed, almost no reversals. This, as we put up a house, if the cornerstone of instability, is not strong, houses were built is not high, cover unstable, calling such would "reinvent the wheel", calling such will come up with a "tofu dregs" projects. On the contrary, reinforce the tie as long as the cornerstone of stability, then building up the faster corrugated, and the building will be more of quality.
As the U.S. stock market as the economy continued for more than 100 of the months of rising bubble is gradually emerging, up has been overdone. As a result, the normal technical callback begins. Dow continuous beneath 11,000 points and 10,000-point mark, and on March 20, 2001 straight to 9721 points. While the U.S. stock market technical correction to the critical point and time, so that most Americans do not believe in the big events, and this is the September 11, 2001 in the United States of "911" terrorist attacks. "911" not only make Americans accident has kept stunned the world, global stock market panic whom.
In this particular context, the U.S. stock market from a "technical correction" into "panic down." "911" for the first time shortly after the Dow 9,000 points, the next to wear, and almost equal to 8000 points mark. September 21, 2001, the Dow fell to 8236 points. March 19, 2002 to a million points, up to 10635 points. Driven a further 11,000 points by the end of 2005. December 20, 2006, setting a record high points are 12549 points.
This is the U.S. stock market, a worldwide, global stock markets! Its growth is one or two hundred years of experience, its growth is by no means "anxious to" and not "overnight success", and also why the Dow and can grow with it, step by step, it is obvious the Dow from the 40-point "grow up" into today above the 10,000 point, it is definitely not a day, in one step. Therefore, the growth of the stock market can not see Lee Ji Gong should be step by step, and practical it is to be responsible for future generations.
