Dow passes 20,000, but that doesn’t affect most americans’ wallets _ the two-way _ npr


The Dow Jones industrial average cruised past another milestone Wednesday — the 20,000 level, further evidence of the long bull market that has lifted share prices since the depths of the financial crisis.

The stock market rally has been remarkably durable so far, withstanding the banking crisis in Europe, the Brexit vote, natural disasters, terrorist attacks, periods of disappointing growth in the U.S., and the polarizing U.S. Us dollar exchange rate indian rupee presidential election.

Crossing the 20,000 threshold isn’t significant in itself. What are stock market futures It’s simply a number. Binary words But it’s a round one with all those juicy zeroes.

Ucsd my chart So let’s take a moment to examine why stocks have done so well in recent years, why the Dow is an imperfect proxy for the market and why the bull market hasn’t changed the economic fortunes of most Americans.

Over the long term — meaning decades or even a century — stocks are by far the best-performing financial asset. Text to number converter Adjusted for inflation, stocks have returned an average of 7 percent a year.

But by then, the seeds of recovery had already been planted. 1 usd to ils The TARP rescue, whatever its faults, stabilized the banking system. Exchange rate usd inr And the Federal Reserve had put in place an extraordinary policy — keeping interest rates near zero — that ultimately made stocks extremely attractive.

The basic idea behind the Fed policy was simple. Decode binary If the interest rate you get on safe assets such as bonds is essentially zero — who wants that? — investors will eventually put their money back into real estate and stocks. Usd mxn And that’s exactly what has happened. Python example script The great stock market rally roughly coincides with the Fed’s near-zero policy, which has been in place since 2008. 1 usd to inr in xoom At the same time, corporate profits have come storming back since the financial crisis, and company earnings are closely correlated to stock market performance. Binary translator So if you want to understand Dow 20,000 — the Fed and corporate balance sheets are the best place to start.

The Dow isn’t the entire stock market. 100 usd to eur Not even close. 99 usd It’s a weighted average of just 30 major stocks, including Exxon Mobil, General Electric, Apple and Wal-Mart. Usd nzd exchange rate Financial professionals pay closer attention to broader indexes such as the S&P 500 or the Russell 2,000. Fundamentals of futures and options markets pdf 8th But for much of the media and in everyday conversation, the Dow is often the default, the old standby, cited by force of habit. Famous quotes by famous people It’s even used as shorthand for how the market is doing. Eur usd rate That’s a mistake. Euro to inr chart Because it only represents the fortunes of 30 big companies, the Dow doesn’t tell an investor anything about the world of startups or the midsize firms that employ so many Americans. Eu to usd The Dow doesn’t include Facebook, Amazon or Google’s parent company, Alphabet.

The stock market has recovered a lot better from the financial crisis than the overall economy. Dollar vs rupee exchange rate today Economic growth has been sluggish since the Great Recession, averaging only about 2 percent. Usd to inr exchange rate history Wages have been stagnant. Exchange rate ksh to usd But the stock market has yielded handsome returns, benefiting institutional investors and households with the means to invest in stocks.

All this has contributed to the growing disparities between affluent Americans and everyone else. Gender roles in society today For those who have maxed out contributions to 401(k)s or socked away money in a brokerage account, the stock market has been a godsend. Exchange rate usd eur But only 52 percent of Americans have money in the stock market, matching the lowest rate in 19 years, according to a Gallup Poll from April. Convert cad to usd In 2007, according to that same poll, 65 percent reported investing in the market. Gender inequality research paper Based on those Gallup numbers, many Americans lost faith in the market at exactly the wrong time — just as it was staging a powerful comeback.

Another discouraging side note: The stock market rally could be sweetening the retirement portfolios of ordinary Americans. Pound dollar exchange rate today But those portfolios tend to be skimpy, meaning ordinary investors don’t get much bang from their stock market bucks. How does the oil futures market work In 2015, the median balance in retirement accounts was just $26,405, according to Vanguard, one of the largest managers of retirement plans.

The stock market was jittery in the days immediately before the election. Pound usd forecast And according to research by two prominent economists, the market dipped when Donald Trump’s election prospects improved in betting markets. Eur usd candlestick chart They even predicted that the S&P 500 would be 12 percent lower with a Trump victory than a Clinton win.

And for a few hours after Trump clinched the presidency, stock market futures plunged, falling by as much as 5 percent. Usd to malawi kwacha But prices quickly recovered, and the market has enjoyed an unanticipated Trump rally that began Nov. Words to binary 9, the day after his victory. Commodity meaning in tamil It’s impossible to pinpoint a single reason for the post-election bounce. Cattle futures market prices Some analysts point to Trump’s promises to spend big on infrastructure and cut taxes, moves that could juice the economy.

Trick question. Usd aud forecast Only fools say they can predict where the stock market is going. Ashley furniture store credit card What is known is that a single event can trigger a stock market sell-off — like a military confrontation, a bank failure or a big jump in oil prices. Nzd usd exchange rate But this market rally has withstood many unsettling events. Aud to usd forecast 2016 So who knows?