Almost 15 years after first reaching 1500 points way back in March 2000, the S&P 500 has finally climbed the 500 points necessary to reach its new milestone of 2000. Will it take another 15 years to reach 2500? Who knows, hopefully the index will trade in a cycle for a while so we can continue accumulating dividend growth stocks. The last 15 years have been essentially dead with many peaks and valleys during the period.
The Dow has also experienced long periods between major milestones. The DJIA first reached 1000 points in 1972. The Dow then stayed under 1000 during the rest of the 1970s and into the early 1980s. Once it finally broke out of its long trading range, it jumped up to 2000 in 1987. What happened once the Dow surpassed 2000? Well, I think we all know.
As many of us have seen, the market can stay depressed or overvauled for years even decades. This is the primary reason why I focus on dollar cost averaging and believe market timing ultimately will cost you money in the long run.
Let the race to 3000 begin!
Glad to see the markets reach 2000 points today even if it wasn't quite sustained. If the Fed initializes another round of QE in 2015 then 3000 may become a reality sooner than we expect lol. I predict we'll see the Dow at 18,000 points by this time next year because I'm hopelessly optimistic ^_^
ReplyDeleteLiquid,
DeleteI agree with you. It seems like we have had 10-15 of these 3-6% corrections over the last few years and each time everyone jumped into the market very quickly. We may get a 15-20% correction, but only after a 60% rally. Personally I'm going to keep averaging in.
MDP
The correction doesn't seem to be coming in. Like you mentioned, we just have to keep investing.
ReplyDeleteDGJ,
DeleteYou are correct. There are certainly values in all markets and the name of the game is passive income, so I will keep buying in all market conditions.
MDP