Dow Jones Industrial Average (DJIA) at X or 2X?
Many people interseted in the stock market love reading articles like "DJIA to 20,000!" and the like. However, saavy investors know a "secret", and that is, if the DJIA is at X, it is really at 2X already for investors.
Consider the following graph of the DJIA (blue line) and something called DJITR
The other line is the DJIA but with dividends reinvested (the "TR" stands for "total return"). Note how, over time, the gap between the two lines gets wider? So while the DJIA is currently at 21,435, the DJITR is at 45,729. Is there anyone freaking out about the DJIA at 45,000? I'm sure those types of articles will come soon... and when they do, the DJITR may already be around 90,000.
Consider investing your dividends if that works for you. Your gains will just keep compounding.
Thanks for reading!
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