The Dow Jones Has Rewarded Investors 68,300% in Over 120 Years of Existence

  • The Dow Jones managed to climb above 28,000 on Friday.
  • The last 120 years has shown that the Dow moves in cycles but has always managed to print record highs.
  • The current bull market has entered its 120th month, and one Fed official believes that the economy has more muscle.

The Dow Jones Industrial Average just topped 28,000 on Friday, thanks to strong performances by Apple Inc, Home Depot, and United Technologies. These three companies contributed a combined 714 points since mid-July to push the index to an impressive 11th fresh record high in 2019.

Many traders celebrated the blue chip index’s historic ascent. One, in particular, saw the momentous rally as a fitting occasion to remind everyone about the Dow’s mind boggling growth throughout the years. Ryan Detrick, a senior financial strategist, took to Twitter to illustrate the power of playing the long game.

An analyst emphasizing the impact of ignoring day-to-day noise | Source: Twitter

The 68,300 percent growth in 120 years discounts dividends, which could have significantly increased the yield. Nevertheless, this is a powerful illustration of neglecting market fluctuations and keeping your eyes peeled on the prize.

The Dow Jones and Markets Move in Cycles

A legendary investor once said, “buy when there’s blood on the streets.” This is a sound investment advice provided you have the patience akin to Warren Buffett.

Over the last 120 years, the Dow Jones went through numerous cycles of growth and contractions. Some were longer than others, but every single one provided an opportunity to accumulate massive fortunes. For instance, the Panic of 1901 devalued the stock market by 46 percent. It took the Dow 19 years to recover from the crash, but when it did, the index rose from 100 points to close to 400 points by the end of the 1920s.

If you bought while there was blood in the streets, you would have made enough money to shield yourself from the nasty impact of the Great Depression. The Dow…

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