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The DJIA is a poor barometer

As much as I appreciate the money I have made in the past six months, the DJIA is in no way a good barometer of how healthy the economy is, or where it's headed.

Take the time to chart the DJIA between 1929 and 1940, and you'll notice two apparent bull markets in the midst of the Great Depression. By 1937 the DJIA had recovered half of it's pre-10/29 value, but unemployment remained in the high teens. In mid-1937, it went into free-fall again and unemployment rocketed back up to nearly 20%.

The Dow can hit 15,000, but if we don't get our national debt reduced (and I mean quickly) it will drop like a rock in short order.


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