The Dow Jones Industrial Average (DJIA) hit 50,000 for the first time in history on February 6th.
While the milestone only garnered a few small headlines, the impact of reaching such a monumental milestone cannot be underestimated.
It’s been a long 50-year+ journey from when the DJIA first crossed 1,000 (November 14th, 1972) to break through the 50,000 barrier.
In today’s world of short-term catastrophic journalism, whose 24/7 negative slant on everything has even the most optimistic of Pollyannas feeling downright gloomy about the direction of our economy/markets, and geopolitical environment.
I can’t blame you really, I mean, how could you not, with everything happening in the world?
However, let’s take a moment and celebrate the DJIA reaching 50,000, and stop the merry-go-round of negativity by looking through the lens of history to reflect on how awesome America’s economy and the capital market have been over the last 50 years!
1975
Saigon falls, staining the American military's reputation before the world. Margaret Thatcher became the first woman leader of Britain’s Conservative Party. Saturday Night Live debuts that fall.
- Global population: 4.1 billion, fully half of whom live in extreme poverty.
- U.S. population: 216 million
- U.S. real GDP: $5.49 trillion
- The DJIA year-end close: 852.41
- S&P 500 Earnings: $7.71
- S&P 500 Dividend: $3.73
1985
Just ten years later, Windows 1.0 was released, and the Coca-Cola company made one of the all-time great corporate blunders by rolling out New Coke. Mikhail Gorbachev comes to power and meets with President Regan.
- Global population: 4.85 billion
- U.S. population: 238 million
- U.S. real GDP: $7.71 trillion
- The DIA year-end close: 1,546.67
- S&P 500 Earnings: $15.68
- S&P 500 Dividend: $8.20
1995
Sandra Day O’Connor becomes the first woman on the Supreme Court, the Oklahoma City bombing devastates the nation, and Netscape goes public.
- Global population: 5.7 billion
- U.S. population: 266 million
- U.S. real GDP: $10.28 trillion
- The DJIA year-end close: 5,117.12
- S&P 500 Earnings: $37.70
- S&P 500 Dividend: $14.17
2005
John Paul II dies and, in record time, is canonized in only 9 years. YouTube sees its very first video uploaded. Humanity successfully lands its first-ever space probe on Saturn’s moon Titan.
- Global population: 6.5 billion, but by the turn of the century, the rate of extreme poverty had fallen to one person in three.
- U.S. population: 296 million
- U.S. real GDP: $14.37 trillion
- The DJIA year-end close: 10,717.50
- S&P 500 Earnings: $76.45
- S&P 500 Dividend: $22.38
2015
Refugees begin pouring into Europe after ISIS throws the Middle East into utter chaos. The offices of Charlie Hebdo, a satirical magazine, were attacked by a gunman, killing 12 people. Greece’s austerity crisis worsens as politicians refuse to budge.
- Global population: 7.29 billion, only one in ten of whom live in extreme poverty.
- U.S. population: 322 million
- U.S. real GDP: $18.9 trillion
- The DJIA year-end close: 17,425.03
- S&P 500 Index Earnings: $106.32
- S&P 500 Dividend: $43.16
2025
For only the second time in US history, a US President begins serving a non-consecutive second term. The US military drops bombs in a 37-hour non-stop bombing run to destroy Iran’s nuclear facilities using the advanced technology bunker-busting bombs. Two of Hollywood’s most iconic actors died within days of each other – Diane Keaton and Robert Redford.
- Global population: 8.31 billion
- U.S. population: 343 million
- U.S. real GDP (full year estimate): $24 trillion
- The DJIA year-end close: 48,063.29
- S&P 500 Earnings (Estimated): $270
- S&P 500 Dividend (Estimated): $80
2026
DJIA hits 50,000!
Yes, you are reading this history lesson correctly – the DJIA rose nearly 59 times in the last 50 years, not counting dividends. Its large company, brethren; the S&P 500 rose nearly 75 times on an earnings increase of 35 times and a dividend boost of 21 times.
This impressive history has happened right under our noses, DESPITE the many, if not downright, daunting challenges we have faced as Americans.
Congratulations to the DJIA – a great example of what the worldwide spread of free markets can do for investors!
Stay the course, my friends.