This is a long term Dow Jones chart which gives us the “big picture” of the American economy for the last two hundred years. The Dow was created by the year 1896, by a journalist named Charles Dow and a friend of his – Edward Jones, who was a statistician. Event though, the Dow doesn’t have 200 hundred years history, this long term Dow chart shows the probable behavior of the index before the year of its creation. The interpolation is based on some reliable methods, based on stock prices and other indexes.
There is one really interesting thing about this chart, and this is the strong, very obvious, steep and clear uptrend. For the last 200 years the Dow Jones Index has been in an uptrend, which is really amazing. Do you know ANY market, that moves only up? I don’t, but I hope there is … because otherwise there will be a major retrace of the indicator, which won’t be anything good about peoples’ life and the world economy.
Very Long Term Price Chart
Even the Great Depression is disparging in the trend, not to mention all the other smaller crises. You can see that the line in the middle of the chart acts as a magnet for the price. Also the price has moved exceptionally in the purple zone. It’s move out the zone after the year 2000 is a clear prediction of the financial crisis that hit the whole world in 2007. According to this long term chart the normal value of Dow Index is around 5000 – 6000 level. It’s even possible to see values below 3000, according the historical deviations of the index and if the price moves below the pink trendline.This information is for educational and informational purposes only. This is not an investment advice. The information also may not be 100% correct.