The Washington Post

The Dow Jones’s new high is fake

The Dow Jones industrial average passed 14,164.53 today. That's its highest reading ever. Huzzah!

Or not. That number doesn't adjust for inflation. As CNBC's Jeff Cox writes, "in inflation-adjusted dollars, the Dow would need to hit 15,731.54 to break the record." In fact, in inflation-adjusted terms, the Dow is still well below it's 2000 high.

Oh, and the Dow Jones industrial average, which measures the performance of 30 companies, is a useless market indicator, and you should follow the S&P 500 instead.

Sorry to be a bummer.

Comments
Show Comments

To keep reading, please enter your email address.

You’ll also receive from The Washington Post:
  • A free 6-week digital subscription
  • Our daily newsletter in your inbox

Please enter a valid email address

I have read and agree to the Terms of Service and Privacy Policy.

Please indicate agreement.

Thank you.

Check your inbox. We’ve sent an email explaining how to set up an account and activate your free digital subscription.