Milestone highs and lows Closing milestones of the Dow Jones Industrial Average

linear graph of djia 1896 through april 2008



logarithmic graph of djia 1896 through july 2011

like other stock market indexes, dow undergoes periods of general increase , general declines or stagnation. bull market term denoting period of price increases, while bear market denotes period of declines. wall street considers bear market in session when multiple broad market indexes have downturn of 20% or more in value lasting @ least 2 months.

there 2 types of bull markets. secular bull market period in stock market index continually reaching all-time highs brief periods of correction, during 1990s, , can last upwards of 15 years. cyclical bull market period in stock market index reaching 52-week or multi-year highs , may briefly peak @ all-time highs before rapid decline, in 1970s. occurs within relatively longer bear markets , lasts 3 years.

the following secular bull , bear markets experienced dow since inception:

1885–1890: bull market. first close of 62.76 on february 16, 1885, dow rises steadily 5 years, until reaching peak of 78.38 on june 4, 1890. record stand 15 years, until dow closed @ 79.27 on march 24, 1905.
1890–1896: bear market. dow plunges on 63% on next 6 years, set all-time low of 28.48, on august 8, 1896.
1896–1906: bull market. after setting all-time low during summer of 1896, dow erases these losses, , reaches peak of 103.00 on january 19, 1906.
1906–1915: bear market. dow loses 48.5% of value on next 22 months, before reaching low of 53 on november 15, 1907. 1906 1915, dow remains stuck trading between 53 , 103. index reaches secondary low of 53.17 on december 24, 1914.
1915–1919: bull market. after hitting seven-year low in late 1914, dow rises 125% on next 5 years, reaching new high of 119.62 on november 3, 1919.
1919–1921: bear market. dow loses 46.6% of value in on 21 months, before reaching low of 63.90 on august 24, 1921.
1921–1929: bull market. on next 8 years, dow increases 500%, , grows closing high of 381.17 (theoretical intra-day high of 386.10) on september 3, 1929.
1929–1949: bear market. stock market crash of 1929 precedes great depression. dow plunges 41.22 (theoretical intra-day low of 40.56) on july 8, 1932, erasing 33 years of gains, in under 3 years. although cyclical bull markets occur in 1930s , 1940s, index takes 22 years surpass previous highs.
1949–1966: bull market. dow posts impressive growth in booming economy following second world war. starting 161.60 in june 1949, when p/e ratios reach multi-decade lows, index ends 5 points below 1,000 on february 9, 1966. inflation-adjusted high set on december 31, 1965 not surpassed 30 years, until dow s first close above 4,700 on july 7, 1995.
1966–1982: bear market. traders deal stagnant economy in inflationary monetary environment. dow enters 2 long downturns in 1970 , 1974; during latter, falls 45% bottom of 20-year range.
1982–2000: bull market. dow experiences spectacular rise in history. meager 777 on august 12, 1982, index grows more 1,500% close @ 11,722.98 january 14, 2000, without major reversals except brief severe downturn in 1987, includes largest daily percentage loss in dow history.
2000–2003: bear market. index meanders, , plunges 40%, closing low of 7,286.27 on october 9, 2002.
2003–2007: bull market. cyclical bull closing peak of 14,164.53, reached 5 years later, not surpass inflation-adjusted high set on december 31, 1999.
2007–2009: bear market. renewed bear recognized in summer 2008 , multiple volatility records set autumn. acute phase in 2009 brings index new 12½ year closing low of 6,547.05, on march 9, 2009, total loss of 54% in 17 months.
2009–present: bull market. dow remains volatile during ensuing climb, losing 20% during summers of 2010 , 2011, however, february 1, 2013, index closes above 14,000 first time since october 2007. dow continues upward surpass prior all-time record on march 5, 2013 and, end of 2013, sets new all-time inflation-adjusted high first time since end of 1999. despite significant corrections, dow close above symbolic level of 20,000 first time ever on january 25, 2017 , catapulted way towards 25,000 in late 2017.




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