Dow Smashes 20,000; What Should Investors Do?

Investors feeling anxious as the Dow breaches a huge milestone aren’t thinking about stocks in the right way: long term. A little history lesson could calm their nerves.

(Image credit: Ilya Terentyev)

As the Dow broke through the seemingly magical milestone of 20,000 in trading on Wednesday, some clients are asking me what they should they do now with their investments. My short answer is “enjoy the ride.” Best to view the milestone as a roller-coaster-like ride to a much higher number. Rather than bore you with technical analysis referencing P-E ratios, charts and trends, it may be more interesting to view the big picture.

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Dow 2000 to Dow 300050% change
Dow 9000 to Dow 10,00011% change
Dow 19,000 to Dow 20,0005% change
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Today Dow 20,0004% annual increase6% annual increase7% annual increase9% annual increase
Dow in 10 years29,60435,81639,34347,347
Dow in 20 years43,82264,14277,393112,088
Dow in 30 years64,867114,869152,245265,353

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Brad Rosley, CFP
President, Fortune Financial Group (FFG)

Brad Rosley, CFP®, has been president of Fortune Financial Group (FFG) since 1996. FFG runs a virtual planning practice working with clients from all over the country. Rosley specializes in helping clients successfully navigate retirement related planning goals and construct investment portfolios to meet their personal life goals. His book "Beyond Money" made the Amazon best-seller list in the summer of 2018.