Dow 20,000 !!


<image credit to money.cnn.com>
This has become the headline news for major financial newspapers or webs, DOW Index finally broke through the psychological level of resistance of 20,000.

 As for me, although it’s a milestone it just a “figure” without looking into the fundamental or valuation of the market.






You may find below news interesting to read :


From CNBC: Dow 20,000: Its insignificance may rival its importance (click )

From The New York Times: The Dow Hit 20,000. Now What? ( Click )

From CNN/ Money : Boom: Dow hits 20,000 for the first time ever (click )

From Bloomberg : Does Dow 20,000 Mean It's Time to Get Out? ( click )

 


But one of the articles caught my attention as they described the numbers of days it took for Dow to climb from a thousand to another thousand levels.

Dow clambers above 20,000 — marks 2nd-fastest run to a milestone in history ( Click here for full story)



image credit to marketwatch.com





Did you spot the problem with these figures?



As I mentioned before in my blog post about: "Lies, damned lies, statistics ! “(click ), we need to interpret and analyse any figure given or presented to us in order to discover more about it. Remember to take all the "facts or statement " given with "a grain of salt".



Anyway, while everyone seems happy with DOW close above 20,000, let’s celebrate our Lunar New Year and may this New Year bring you “Good luck, Prosperity, Joy and Contentment. “





Cheers !! 恭喜发财 !!


 Quote Of The Day :


"People invariably feel better after the market gains 600 points and stocks are overvalued, and worse after it drops 600 points and the bargains abound." by Peter Lynch


Comments

  1. SGDividends27 January 2017 at 09:54

    Not sure . Is it the bottom row ..To gain 1000 to reach 1000 take 21652 or
    It's talking about absolute but we should be concerned about percentage rise ?

    ReplyDelete
    Replies
    1. STE28 January 2017 at 00:59

      Hi SGDividens,
      Yes! You are right ...is about absolute value not about the points...1000 increase when index at 1000 level,we are talking about 100% increase in market cap...while from 19000 to 20000, market need to increase the value by slightly more than 5%... :-)
      Cheers !

      Delete
  2. ThumbTack Investor30 January 2017 at 00:03

    Hi SGDividends & STE,

    Not only that, before we even look at the % changes, we have to adjust all the figures for inflation.
    Obviously in an environment of high inflation, the increase would be much more rapid than if it's an environment of deflation.
    So all "real" changes, both on the gain or loss side, have to be adjusted for the inflation during the said periods under review.

    Cheers
    TTI

    ReplyDelete
    Replies
    1. STE30 January 2017 at 07:32

      Hi TTI,
      Welcome back from your holiday!! I still trying to figure out where is the place of the photo you have posted in your blog post 😀😀. Yah! You are right ...we will need to adjust for inflation on these figures as well... $1 20 years ago may not same as today’s value..ie NPV..👍👍
      Cheers!! Wishing you and your family a very Happy and Prosperous CNY!

      Delete

Post a Comment

Related Posts Plugin for WordPress, Blogger...

Labels

Show more

This Month's Top Blog Posts

A Misconception About Investing Risk and Market Volatility

Image
  Volatility ≠ Risk When it comes to investing, there’s a big misconception that volatility equals risk. It’s something you hear all the time in the financial world—news headlines flash with “market volatility,” analysts fret over fluctuating stock prices. Many investors start to panic the moment they see red on their portfolios. But for those of us who take a long-term, value-focused approach, we know that volatility is not something to fear. In fact, volatility is our friend. Remember as I always mentioned: Crisis = Danger + Opportunities 危机 = 危险 + 机会   What Is Volatility, Really? Volatility is basically how much and how quickly the price of a stock or asset moves up and down over a given period. It’s typically measured by the standard deviation of returns—yes, all that maths stuff you might have learned in finance class. But don’t get too caught up in technical terms. Volatility just means the price is bouncing around more than usual. Now, many see thi...
Read more

Portfolio & Dividend Update : 4th Aug 2024

Image
 Wow! Time flies as my last blog post has been almost 6 months. As we reach the midpoint of 2024, the stock market presents a mixed bag of opportunities and challenges. The landscape has evolved significantly since the beginning of the year, reflecting a complex interplay of economic indicators, geopolitical events, and corporate earnings. Investors are navigating a market that is both promising and unpredictable , shaped by ongoing adjustments in monetary policy, fluctuating inflation rates, and shifting global dynamics. The first half of 2024 has seen notable volatility in the stock market. After a strong start, equities have experienced fluctuations due to a variety of factors. The market has been moving like a pendulum swing since early of the year and we have started to see some pullback in the last two weeks due to economic uncertainty. I guess the market is just trying to find an excuse (weaker job data/ PMI / consumer confidence) to have such a correction, which I think ...
Read more

Portfolio & Dividend Update : 3rd Qtr 2023

Image
  Higher For Longer   The Federal Reserve held interest rates steady in the recent FOMC meeting, while also indicating it still expects one more hike before the end of the year and fewer cuts than previously indicated next year. In addition to holding rates at relatively high levels, the Fed is continuing to reduce its bond holdings through the so-called QT , a process that has cut the central bank balance sheet by some $815 billion since June 2022 . The Fed is allowing up to $95 billion in proceeds from maturing bonds to roll off each month, rather than reinvesting them. The “ dot plot ” chart from the latest FOMC meeting showed a much higher and longer rate till 2026 and this has “spooked” the market, causing some reactions and pulling down of market indexes last week. “Chair Powell and the Fed sent an unambiguously hawkish higher-for-longer message at today’s FOMC meeting,” wrote Citigroup economist Andrew Hollenhorst. “The Fed is projecting inflation to steadily co...
Read more

2023 Portfolio & Dividend Update

Image
  A Rollercoaster Ride I know, Uncle was really late to have this 2023 performance review as we are already in February 2024 😊 . Pai-seh, I was busy with a family trip to Korea followed by a Cruise Trip onboard RCL. Also, during the school holidays, we went a few times short trips to Malaysia and back to my hometown. My younger daughter got her O Level result followed by searching and applying for JC. That’s why I have been delaying this update and dragging my feet to write this blog post. I think most of us had the same feeling that 2023 was a challenging yet dynamic period for investors, marked by a series of unpredictable events that significantly affected our returns. I have seen my portfolio up by more than 10% in the early part of the year and it dropped by more than -8 % at one time and recovered slightly better at the end of the year with +2.3% (including dividend). As an investor, navigating through such a volatile market requires adaptability, patience, resilience,...
Read more

1st Qtr 2018 : Dividend and Portfolio Update

Image
image credit Izquotes.com Is time to calculate our dividend income for 1 st Qtr 2018 as the financial result for most of the company should have been announced by this time. The market has gone through like a “ roller coaster “ ride in 1 st Qtr 2008 where it was down by almost 10% at one point and rebounded subsequently. As I mentioned in my early blog post ( here ), even with correction of 10-20% from the current high in the US market, I would consider it still as “ expensive or rich in valuation “ and normal correction in any market cycles.
Read more