Dow and Then: A Look at the Dow Jones Now and 50 Years Ago

by Susan Paige on February 13, 2019 · 0 comments

Playing the markets allows you to grow your money for retirement and to have something to pass down for future generations.

The more you learn about investing, the more addictive it can become. You’ll want to rack up tips that can help you win big.

However, you need to brush up on your history, so you can understand the major markets with more perspective. One of the most critical things you’ll want to wrap your head around is the Dow Jones Industrial Average.

Taking a look at the Dow 50 years ago can inform you as you invest today.

Start with these points to learn a bit more about the history of the Dow Jones.

People Weren’t Investing Nearly as Much 50 Years Ago

What is the Down Jones today? It’s a stock market average of some of the most booming companies in existence at the moment. Today, this market is worth trillions of dollars, but that simply wasn’t the case 50 years ago.

In the 1950s, less than 7 million people in the United States owned stocks. The number of investors today is staggering in comparison, due to the fact that people now know more about the markets and how to play them, and have better access.

Commissions and Fees Were Way Less Flexible

Since far fewer people were buying stocks, there wasn’t as much parity when it comes to the fees and commissions.

Fees were far more fixed since there wasn’t as much competition to go around, and traders had to make a profit. Today, you are better able to negotiate fees and comparison shop before diving into the market.

The Landscape of Companies Was Far Different

Some of the big names on the Down Jones in 1959 included Swift & Company and Anaconda Company. That same year, companies like National Steel and Corn Products Refining were removed from the Dow.

The landscape has shifted completely over the course of 50 years.

Today, the big companies on the Dow Jones include General Electric, Apple, and Intel.

Major Events of the Times Affected the Markets

Historic events always play a major role in changing the market.

The year 1959 is no different, as it pertains to the Dow. For instance, the market experienced a steelworkers striker, the creation of the first nuclear plants, and the launch of Sputnik I around this time. You can track changes in the markets that directly correlate with these historic events.

Events of today still have a huge effect on the Dow. For instance, the recent United States government shutdown created a lot of uncertainty and speculation, to include a potential impending US-China trade deal.

Understand the Markets and Always Do Your Research

As you can tell by these tips, the more things change, the more they stay the same. Taking a look at how the Dow Jones Industrial Average operated 50 years ago can give you some valuable perspective.

You can use this perspective to guide you as you choose to invest in the markets today. Having this foundation will help you to grow your portfolio and really make winning investments that can sustain you.

Use these types of tips to inform your investing and to help you avoid making money mistakes in your life. Leave us a comment and subscribe to learn more about finances and investing as a whole.

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