Did we just go back 10 years?
I am talking about going back in time but I am not talking about time travel.
I am talking about going back financially and I am using the Dow Jones Industrial Average as an example. I decided to go look at the performance of the stock market, specifically the Dow Jones Industrial Average, from 02 October 1998 to 14 October 2008.
I am using the Dow Jones Industrial Average because the average was created as a weighted average of 30 large companies. My understanding is that the idea was to create a number to measure the performance of the economy. the index was created across multiple industries so as to introduce diversity by not keeping all the eggs in the same basket. For Example, if one industry was going up and another industry was going down, then the average may still balance out depending upon the magnitude of the individual change.
You can find more information about the Dow Jones Industrial Average at Dow Jones Indexes.
Coming back to my track, let me plot how the graph indicating the performance of the Dow Jones Industrial Average looks like
Dow Jones Industrial Average from 1998 to 2008
You may have noticed that although we have gone back 10 years if we were to inspect the performance of the Dow Jones Industrial Average. However; some clouds do have a silver lining and there may be hope as we know that we were up and hit an intermediate peak on 09 October 2007 and if we continue to perform, then the likelihood that we will go up to our intermediate peaks is higher and then we could scale new higher highs.
I think touching new peaks in the future is only a matter of time.
Source: Google Finance
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