What does the 20,000 mean with regards to the Dow Jones stock index?

What does the 20,000 mean with regards to the Dow Jones stock index?

About 2 trillion dollars since Nov 9th.

So thats how much money has gone into it? how does that translate to the 20,000 number

>what are indexes
Look it up faggot

I cant find anything that explains it well, thus I came here as a last resort.

Basically for every dollar you put in you can expect to get a yearly return of 20k dollars.

Thanks Trump!

It means that bonds are fucked and every one is going into stocks

A value that would have been reached sooner if Hilary Clinton had won.

Can you go into further detail

nothing, except people use it as a hype machine to get normies to buy at the top

Im asking what the literal number means, sorry, like really new to this kind of stuff

Those of us who are in it can buy stuff and shit all over those who are not in it

Don't listen to any of these dumb bastards so far. The Dow Jones Industrial Index, which is what you are quoting, is a select "basket" of mostly blue chip, established, companies. GE, At&T, etc. The 20,000 simply refers to the sum of all of those companies' per share stock prices who are included by (((them))) in the DJIA.

Isn't this the max? Last I remember it went this high and then the Great Recession of 08 happened. Are we possibly in another Bubble again?

ha!

its definitely a bubble, it's just that nobody knows when it will pop and nobody wants to miss out on the hot hot action in the meantime.

So its basically how much all the "blue chip" companies in Dow are together on average?

Remember 2008?

nothing much, it's purely psychological

also DOW is mostly symbolic they just keep it around because its the oldest continuous index.

S&P500 index, Russell Index, and other are better for gauging the average stock market perfromance

aren't we always in bubbles thanks to (((them)))

Yes, on a per share basis.

what do you mean per share basis?

When you watch CNBC and see all those fucking numbers scrolling on the bottom of the screen, those are all stock prices for companies. The price for a single share. Aka the price you would have to pay a broker to buy you one share of that company.

The Dow Jones Industrial Index is a made up group of 30 publicly traded companies (Apple, Caterpillar, Johnson and Johnson, JPMorgan, Visa, Verizon, etc.) which are supposed to represent the overall well-being of the free market. The number itself is arbitrary, and relates to nothing us US dollars, but its rather an average amount all 30 companies are worth (in stock).

It hitting 20,000 is an all time high. However, it's basically meaningless because the market always goes up. Just look at the all time charts for the US stock market. There are a few "dips" over the long run (great depression, internet bubble, housing bubble, Obongo in office), it goes up.

You're fucked if you retire in a dip, though. Bad timing.

Ah okay, thanks guys

What does it mean? It may mean that Trump optimism will continue. It may mean we will fall harder.

It's a benchmark. If you want to know the math behind the specific number, look it up. Basically, the net weighted movements of the stocks comprising the index determine the indexes movements.

So I add up all the per share stock prices of the DOW 30 and divide them and bam i get the 20,000

No, there's a formula to it because the particular stocks comprising the index change over time.

Okay, but thats the general idea right?

It is. The divisor changes based on stock splits and other shit, but yes.

Yes, but not exactly. It's a "weighted" average to offset the companies that are worth more money but have a cheaper share price (based of amount of shares the company has available).

Apple is one of the richest companies in the world with over $1BILLION USD in CASH, but its share price is only $120 because it's been around for decades and has a lot of shares available. Companies like Google have price of $880 per share, but have less shares available. So they are more expensive, but not necessarily worth more.

Lrn2freemarket

Alright, thanks guys, feel like I got my answer

Kind of, but not really.

The static figure doesnt really mean much. When you look at an index, you're really looking for the change from some other period and making a generalization about stocks. For example: if the S&P 500 is up 1% for the day, you can generalize and say stocks are up today and the general amount is by 1%.

Smart money will start selling soon - trade wars are a Bad Thing for the economy. The only question is if the AIs running the show wait for Trump to actually put tariffs in place or just pre-emptively go "welp Dow's pretty high and we're in uncharted territory, time to sell"

Trade wars are sensationalized. There's always winners from protectionism -- especially citizens.

Only maybe 100 billion has gone directly into the markets since then but some of it is recycled through HFT.

There has been about 4 billion in insider sales since.

In terms of liquidity the market could continue its run for another 6 months to a year before higher interest rates dampened things enough.