Today the Dow Industrials hit 20,000, which is a record high for the index. That is quite an achievement when you consider that 8 years ago the index stood at 5,000.
What does all of this mean?
The IFTF answer is: It doesn’t mean a whole lot — the number is more symbolic than anything else. The symbolism however does have meaning. The DOW Industrials hitting 20,000 proves out the following point that IFTF and many others have been pushing: “While past performance is not an indicator of future results, over time the markets will go up.”
Why are the words “over time” in the quote above so important?
The direction of the stock market on a day to day or even hourly basis is as predictable as the outcome of a presidential election. There’s no way to predict with certainty whether the market will be up or down. However, when the element of time is added to the equation, the odds tend to side with those who are patient.
What should you be doing now that DOW has hit 20,000?
The answer to this depends on what you were doing prior to the 20,000 milestone:
If you were investing in the market prior to 20K, pat yourself on the back, take a peek at that rising portfolio, and most importantly, continue to invest in the market. You have more than likely seen gains as the market has reached 20K, so you have an understanding of what this means.
If you have NOT been investing prior to 20K, don’t be discouraged. It’s time to get started today. The 20K mark is proof that over time, everyone can make money in the market. Start by signing up for a Robinhood app account today.