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Viewed From Abroad, the Dow at 12,000 Isn’t So Impressive (Registration)
October 21, 2006 (FLOYD NORRIS - New York Times)
The Dow Jones industrial average is setting records in the United States, trading over the 12,000 level for the first time this week. But when adjusted for inflation, the American stock market lags behind those of many other countries, and appears to be going nowhere fast.
The chart accompanying this article shows the last 10 years of the Dow, with the level adjusted for changes in the Consumer Price Index. After adjusting for inflation, it remains around 15 percent below the highs it reached in 2000, and has made little progress in recent years.
AntiSpin: Better late than never. At long last the New York Times has caught up with our reclusive iTulip Real Dow expert, who has demonstrated for years that the Dow has averaged 1.64% real annual gains since 1924. Wall Street makes its money on trading the volatility, the ups a downs in the market.
It remains to be seen whether the NYTimes reports on future developments in the Dow through this lens, or whether this excellent report represents a passing moment of clarity. In any case, we award the NYTimes' Floyd Norris the iTulip Honesty in Financial Reporting Award. Well done! And continued deepest appreciation to our anonymous analyst for his originally creating the Real Dow analysis and his tireless effort at maintaining it for iTulip.
iTulip honors Floyd Norris of the New York Times
October 21, 2006 (FLOYD NORRIS - New York Times)
The Dow Jones industrial average is setting records in the United States, trading over the 12,000 level for the first time this week. But when adjusted for inflation, the American stock market lags behind those of many other countries, and appears to be going nowhere fast.
The chart accompanying this article shows the last 10 years of the Dow, with the level adjusted for changes in the Consumer Price Index. After adjusting for inflation, it remains around 15 percent below the highs it reached in 2000, and has made little progress in recent years.
AntiSpin: Better late than never. At long last the New York Times has caught up with our reclusive iTulip Real Dow expert, who has demonstrated for years that the Dow has averaged 1.64% real annual gains since 1924. Wall Street makes its money on trading the volatility, the ups a downs in the market.
It remains to be seen whether the NYTimes reports on future developments in the Dow through this lens, or whether this excellent report represents a passing moment of clarity. In any case, we award the NYTimes' Floyd Norris the iTulip Honesty in Financial Reporting Award. Well done! And continued deepest appreciation to our anonymous analyst for his originally creating the Real Dow analysis and his tireless effort at maintaining it for iTulip.
iTulip honors Floyd Norris of the New York Times
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