Dow Jones Industrial Average

[Reef]

http://www.blackjackinfo.com/bb/show...mp;postcount=2

found it interesting. any thoughts / comments / etc?

[Jeff W]

Pretty sure that these exact graphs have been posted before and IIRC the DJIA graphs don't include dividend reinvestment, in which case they'd be worthless.

The Dollar vs. Euro and Dollar vs. Gold graphs are very relevant, though. IMO, it's prudent to protect one's portfolio against dollar weakness via unhedged foreign equities, CCF funds (Collateralized Commodities Futures), TIPS (Treasury Inflation-Protected Securities), possibly Precious Metals Equities, etc...

[kimchi]

I've seen lots graphs similar to these showing a truer measure of inflation than the US government's useless CPI con figures.

I've had some money invested in a US index tracker, denominated in GBP. Over 10 years, this fund is basically break-even and is still around 30-35% off its peak in 2000.

And that's with dividends reinvested!

$US denominated US index funds are well above zero over 10 years.

The DJI is at all-time highs (even without dividends).

Here's a few 'man on the street' experiences of the declining Dollar:

Europeans used to fly long-haul to Asia for bargain holidays '3rd world prices'. Now many Europeans are taking shopping trips to New York because things there are dirt-cheap (even after the flight).

I personally buy lots of goods (laptops, books, clothes, DVDs etc) from The US and get them sent to me wherever I am - in The UK or Asia. It's just so cheap to buy US goods when you're paid in a foreign currency.

My uncle bought a new camper van in The US, shipped it to The UK, drove it around Europe for a year, then sold it for a profit after shipping and depreciation expenses - this is even after the factored in discount for lower quality US-made goods.

And the US government wants China to remove their currency peg so the Yuan is allowed to appreciate, and increase the price of imports, further raising inflation......

[Jeff W]

[ QUOTE ]
And the US government wants China to remove their currency peg so the Yuan is allowed to appreciate, and increase the price of imports, further raising inflation......

[/ QUOTE ]

I remember that we don't really want this(it's a ploy to goad China into keeping the Yuan pegged) and that if "we" do want it, it's because we're run by idiots.

[gull]

Those graphs are worthless. The change in dollar value of an index is NOT equivalent to the returns an investor would have received.