In the past several weeks, the Dow has flirted with multiple “milestones,” coming close to dropping below 16,000 and then successfully topping 17,000. These round numbers for the index are, of course, somewhat arbitrary. Any psychological benefit or detriment associated with these round numbers is outweighed by the countless other factors that pull on stocks (not to mention the countless quirks in the Dow methodology).
But the statistics can certainly be fun to digest. So, for entertainment purposes, the table below includes summary statistics for each of the Dow’s 1,000 point milestones:
Some interesting observations from the data above:
- The Dow has never crossed below 5,000; after crossing that mark for the first time in November 1995, it never dipped below again (though plenty have predicted it would);
- The Dow has hit multiple milestones in the same year on three occasions: 1995, 1997, and 1999;
- Between 1995 and 1999, the Dow broke at least one new 1,000 point milestone each year;
- Just 35 days after breaking 10,000 for the first time, the Dow topped 11,000;
- The next Dow 12,000 milestone proved more elusive, taking another 2,726 days — the second-longest gap ever;
- The Dow crossed under 11,000 on September 30, 2011 — more than 4,500 days after first topping that level in May 1999.
Feature image: Associated Press.
This article, Useless but Important Information About Dow Milestones, first appeared on Dividend Reference.