Thursday, January 26, 2017

How the Dow Got to 20,000

It took just 42 trading days for the Dow Jones industrial average to go from 19,000 to 20,000 points, the barrier it crossed yesterday. That marks the Dow’s second-fastest march from one thousand-point marker to the next. The record is just 24 sessions, which was how long it took for the index to climb from 10,000 to 11,000 during dot-com-mania in 1999.

On one hand, each 1,000-point rise is less impressive than the last. The climb from 10,000 to 11,000 amounted to full 10 percent gain, for example, while 19,000 to 20,000 equated to just a 5.26 percent rise.

But even when taking that into account, the latest 1000-point move has still been very impressive on a per-day basis. A 5.26 percent increase over the course of 42 days translates into an average gain of about 0.13 percent per day.

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