November Nostalgia! Amazingly, yesterday was the anniversary of the first major milestone for the Dow Jones Industrial Average, as it closed above the 1,000 level for the first time on November 14, 1972 (47 years ago). While many Wall Street analysts popped champagne and likened this record to the breaking of the 4-minute mile, little did they know there were many celebrations to come as the Dow would go on to double, triple, quadruple, quintuple, and so on. In fact, as the Dow approaches its next milestone of 28,000, it has rallied 2,678% (from a price level perspective) which translates into an average annualized price return of 7.4% (~11% including dividends). With this week bringing new record highs to both the Dow and S&P 500, a question we often get is why, of the two, do we reference the S&P 500 in our equity analysis?
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