Dow turns negative for 2006 (Down Near 185 points today)

MarketWatch.com (by Dow Jones) ^ | 1/20/06 | Tomi Kilgore

[SierraWasp]

2:01PM Dow turns negative for 2006 ($INDU) by Tomi Kilgore

NEW YORK (MarketWatch) -- The Dow industrials ($INDU) was last down 173 points at 10,707, and has turned negative for 2006 for the first time. It closed out 2005 at 10,717.50. The Dow has now lost 336 points since closing at a 4 1/2-year high on Jan. 11, and is on course to close at its lowest level since Nov. 16.

[Travis McGee]

Please don't post an image, of before or after.

[Toddsterpatriot]

By the time the ratio (now at 20 BTW) reverts to about 3, what will that mean for the price of the DOW, and the price of gold?

Why does the ratio have to revert to 3?

[durasell]

But I have charts and graphs!

[Travis McGee]

A dollar ain't what a dollar was, and the DOW at 10,000 don't mean much neither.

Graph it in constant CPI adjusted dollars.

[Travis McGee]

Why does the ratio have to revert to 3?

Uh.....history? Do you look at the DOW/gold ratio chart and see nothing? Not even a tingle of neural activity deep in the cortex?

[MikefromOhio]

oh no.

the world is going to end.

bush's fault.

free-traitors blah blah blah...

did I miss anything?

[Toddsterpatriot]

Uh.....history? Do you look at the DOW/gold ratio chart and see nothing?

I see a chart that means nothing before gold floated in the 70's. Past performance is no guarantee of future results. Also, a chart that doesn't take into account the dividends paid by gold and stocks is silly.

[Travis McGee]

Yeah, it's just silly. LOL.

[nh1]

Let us know when she's getting out so we can buy back in!

[edsheppa]

What're you saying, that we should quit worrying because owe it to ourselves?

[carl in alaska]

"did I miss anything?"

/sarc on

Yeah, the Delta Force is on alert to raid those Swiss Banks on Monday morning and seize Iranian assets, including five tons of gold bars and 12 extremely rare Beatles recordings from their early days in the clubs of Liverpool. Really, they're in lockdown at a NATO base in Germany right now....no really they are.

/sarc off

[SierraWasp]

"did I miss anything?"

Not yet, anyway!!!

The more things change... The more they stay the same!!!

[SierraWasp]

Please don't take offense, but I happen to agree with him...

[carl in alaska]

Interesting chart of the Dow and inflation-adjusted Dow. It does show that most of the increase in the Dow since 1965 is just from monetary inflation. But you have to keep in mind that the DJIA stocks are already huge companies with limited growth potential, and some of them have actually been in steady decline and were removed from the index. Most economic growth shows up in the growth of small-cap and mid-cap stocks, and in some of the smaller S&P 500 companies. If you graphed inflation-adjusted small-cap and mid-cap indices you would see a lot more growth. There are companies that were in those indices that have had enormous (20X+) growth in the last 25 years, such as MSFT, CSCO, DELL, DNA, and AMGN.

[greyfoxx39]

BULLETIN >> DOW ERASES ALL '06 GAINS; WORST ONE-DAY DECLINE IN NEARLY 3 YEARS

And the MSM is about to drown salivating over "bad" economic news...I don't remember the flap over all the good economic news we have had lately....this gets more disgusting by the day.

[Toddsterpatriot]

It does show that most of the increase in the Dow since 1965 is just from monetary inflation.

What about 40 years of dividends? And where is the inflation adjusted chart for gold?

[JasonC]

No, I am saying the notion that "if one goes up it will force dollars out of the other" is patent nonsense.

[SierraWasp]

Two powerful questions!!!

[carl in alaska]

I was only referring to the current value of the DJIA, not the inflation-adjusted ROI. If you're calculating ROI, then of course you must include dividends from the Dow stocks. Travis' gold chart is not showing up on my PC so I'm not sure what it says.

[Toddsterpatriot]

The chart means nothing from 1900 until January 30,1934, because gold was fixed at $20.67 an ounce. The chart means nothing from February 1, 1934 until August 15, 1971, because gold was fixed at $35 an ounce.

Other than that, it's the best chart I've ever seen!!! /sarc