Reply #50: Let me tell you why the Dow Jones and other indices are no indication of economic health [View All]

[Cali_Democrat]

The Dow Jones is up about 4,700 points since it's low in March of 2009. Currently it is at 11,255. That's an increase of about 72%.

This is similar to other indices like the S&P 500 and the Nasdaq. So if you have a well balanced portfolio weighted according to the major indices, you've gained 72%. Not bad.

Of course, the rich and wealthy are mostly invested in the market.

The question comes in, is this country 72% better off than in early 2009? Has unemployed been reduced by 72% since 2009? Are ordinary Americans 72% richer? Of course not.

To equate the stock market with the well being of a country is foolish and absurd. It only measure the well being of the rich and the investor class.