Dow Jones Averages – in dollars

Please click here to see investing from 2000 to 2010

and also 1994 to 2010 (Dow Jones)

 

Dow Jones – Here are the last 11 years aver­age return as a per­cent­age

and also actual per­for­mance in dol­lars.

So if you started invest­ing in 2000, this could be your growth.

Let’s begin with a $1,000.00 invest­ment.

Year                    Per­cent­age                        Dol­lars

2000                    – 6.17%                           $  938.30

2001                    – 7.10%                         $  871.68

2002                    -16.76%                       $  725.59

2003                     25.32%                         $  909.30

2004                       3.15%                          $  937.95

2005                    -00.61%                         $  932.23

2006                     16.29%                        $1,084.09

2007                       6.43%                          $1,153.80

2008                    -32.72%                         $   776.28

2009                      18.80%                        $   922.22

2010                      11.02%                        $1,023.84

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…………….Aver­age Per­for­mance       Actual Per­for­mance

________________________________________________

Total                      17.65%

$23.84 divide by 11 years = 1.60% aver­age

divided by 11 years =  $2.167 per year

$2.167 divided by $1,000  = 0.002167 or .21% actual return.

 

Wikipedia – Dow Jones is an index that shows how 30 large, pub­licly owned com­pa­nies based in the United States have traded dur­ing a stan­dard trad­ing ses­sion in the stock mar­ket.

But the ques­tion is, were the com­pa­nies you’re invested in per­form­ing at this same level or not? The aver­age is price-weighted, and to com­pen­sate for the effects of stock splits and other adjust­ments, it is cur­rently a scaled aver­age.

The value of the Dow is not the actual aver­age of the prices of its com­po­nent stocks, but rather the sum of the com­po­nent prices divided by a divi­sor, which changes when­ever one of the com­po­nent stocks has a stock split or stock div­i­dend, so as to gen­er­ate a con­sis­tent value for the index.

What do you expect the future will bring for your invest­ments?

Watch what Kiyosaki has to say about putting money into mutual funds and retire­ment plans and invest­ing for the long term with a diver­si­fied port­fo­lio.

 

If you would rather learn how to Become Your Own Banker, in your own private banking system, call me today. Jennifer Hansen 845-649-7387 or email me at Jennifer@DebtDiagnosis.com

 

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March 30, 2011 · Jennifer · No Comments
Tags: , , , , , , , , , , ,  · Posted in: DOW JONES Performance, FINANCIAL EDUCATION 101

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