The Dow Jones Industrial Average stood at 825.86 as trading closed on Nov. 2, 1971. It closed Tuesday at 36,052.63. That is almost a 43.7-fold increase. Do the math. If the Dow continues to rise at the same rate, 50 years from now it will be 1,573,865. In other words, Dow One Million.
Over long periods, an index of U.S. large-cap stocks, as represented by the industrial average or the S&P 500, has risen with dogged persistence, doubling every 10 years or so. The question that’s bothered me for the five decades I’ve been writing about investing is why everyone doesn’t understand this.