Dow Reaching 30K No Big Deal
Yesterday the DJIA finally broke 30,000, setting a record. It would almost certainly have happened earlier this year but for the pandemic overreaction which suppressed the national, and world, economies. There is a great deal of elation within the financial community and among investors. Frankly, though, I’m not all that impressed. The United States is the greatest economic engine in the world and yet since the mid-1950s the reflection of that engine, the Dow Jones Industrial Average, has failed to keep up with inflation. Consider that this month in 1955 the DJIA was 4,700. Today it is 30,000. Very nice but 4,700 in 1955 is 45,000 today factoring inflation. Yeah. Hard to believe the value of the dollar has fallen so much, but that’s the Fed for you. So while I’m glad the economy is growing we should take a moment and ask ourselves what is really going on. Consider the incredible deficit spending just this year and what it means for the dollar. Really, Economics 101 is still in force. I’ve done that asking and reached my own conclusions which is why I’m all in with crypto currencies, specifically Bitcoin and Etherium. They are the future and are the real hedge against inflation and a genuine store of value.