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First Mover Advantage

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During the 1950s, the Korean War, the Algerian War, the Cold War and other political tensions such as the Cuban Revolution, as well as widespread political and economic changes in Africa during the initial stages of European Decolonization, did not stop the Dow's bullish climb higher. Additionally, the U.S. would also make its way through two grinding recessions; one in 1953 and another in 1958. A 200% increase in the average from a level of 206 to 616 ensued over the course of that decade.

The Dow fell 22.61% on Black Monday (1987) from about the 2,500 level to around 1,750. Two days later, it rose 10.15% above the 2,000 level for a mild recovery attempt.
The Dow's bullish behavior began to stall during the 1960s as the U.S. became entangled with foreign political issues. U.S. military excursions included the Bay of Pigs Invasion involving Cuba, the Vietnam War, the Portuguese Colonial War, theColombian civil war which the U.S. assisted with short-lived counter-guerrilla campaigns, as well as domestic issues such as theCivil Rights Movement and several influential political assassinations. For the decade though, and despite a mild recession between 1960 and 1961, the average still managed a respectable 30% gain from the 616 level to 800.
The 1970s marked a time of economic uncertainty and troubled relations between the U.S. and certain Middle-Eastern countries. To begin with, the decade started off with the ongoing Recession of 1969–70. Following that, the 1970s Energy Crisisensued which included the 1973–75 recession, the 1973 Oil Crisis as well as the 1979 energy crisis beginning as a prelude to a disastrous economic climate injected with stagflation; the combination between high unemployment and high inflation. However, on November 14, 1972, the average closed above the 1,000 mark (1,003.16) for the first time, during a brief relief rally in the midst of a lengthy bear market. Between January 1973 and December 1974, the average lost 48% of its value in what became known as the 1973–1974 Stock Market Crash; with the situation being exacerbated by the events surrounding the Yom Kippur War. The index closed at 577.60, on December 4, 1974. During 1976, the index went above 1000 several times, and it closed the year at 1,004.75. Although the Vietnam War ended in 1975, new tensions arose towards Iran surrounding the Iranian Revolution in 1979. Other notable disturbances such as the Lebanese Civil War, the Ethiopian Civil War, the Indo-Pakistani War of 1971 and the Angolan Civil War which the U.S. and Soviet Union considered critical to the global balance of power, seemed to have had little influence towards the financial markets. Performance-wise for the decade, gains remained virtually flat, rising less than 5% from about the 800 level to 838.
The 1980s decade started with the early 1980s recession. The index went up in 1980. In early 1981, it broke above 1000 several times, but then went down. The index closed at 776.92, on August 12, 1982, which is below the close of 1965, and is usually considered the start of a secular bull. By October, it went above 1000 again, and closed the year above, permanently. The largest one-day percentage drop occurred on Black Monday; October 19, 1987, when the average fell 22.61%. There were no clear reasons given to explain the crash, but program trading may have been a major contributing factor. On October 13, 1989, the Dow stumbled into another downfall, the 1989 Mini-Crash which initiated the collapse of the junk bond market as the Dow registered a loss of almost 7%.
For the decade, the Dow made a 228% increase from the 838 level to 2,753; despite the market crashes, Silver Thursday, an early 1980s recession, the 1980s oil glut, the Japanese asset price bubble and other political distractions such as the Soviet war in Afghanistan, the Falklands War, the Iran-Iraq War, the Second Sudanese Civil War and the First Intifada in the Middle East. The index had only two negative years, which are 1981 and 1984.
Dot-com boom[edit]
The 1990s brought on rapid advances in technology along with the introduction of the dot-com era. To start off, the markets contended with the 1990 oil price shockcompounded with the effects of the Early 1990s recession and a brief European situation surrounding Black Wednesday. Certain influential foreign conflicts such as the1991 Soviet coup d'état attempt which took place as part of the initial stages of the Dissolution of the USSR and the Fall of Communism; the First and Second Chechen Wars, the Persian Gulf War and the Yugoslav Wars failed to dampen economic enthusiasm surrounding the ongoing Information Age and the "irrational exuberance" (a phrase coined by Alan Greenspan) of the Internet Boom. Even the occurrences of the Rwandan Genocide and the Second Congo War, termed as "Africa's World War"that involved 8 separate African nations which together between the two killed over 5 million people; didn't seem to have any noticeable negative financial impact on the Dow either. Between late 1992 and early 1993, the Dow staggered through the 3,000 level making only modest gains as the Biotechnology sector suffered through the downfall of the Biotech Bubble; as many biotech companies saw their share prices rapidly rise to record levels and then subsequently fall to new all-time lows.
On November 21, 1995, the DJIA closed above the 5,000 level (5,023.55) for the first time. Over the following two years, the Dow would rapidly tower above the 6,000 level during the month of October in 1996, and the 7,000 level in February 1997. On its march higher into record territory, the Dow easily made its way through the 8,000 level in July 1997. However, later in that year during October, the events surrounding the Asian Financial Crisis plunged the Dow into a 554-point loss to a close of 7,161.15; a retrenchment of 7.18% in what became known as the 1997 Mini-Crash. Although internationally there was negativity surrounding the 1998 Russian financial crisis along with the subsequent fallout from the 1998 collapse of the derivatives Long-Term Capital Management hedge fund involving bad bets placed on the movement of the Russian ruble, the Dow would go on to surpass the 9,000 level during the month of April in 1998, making its sentimental push towards the symbolic 10,000 level. On March 29, 1999, the average closed above the 10,000 mark (10,006.78) after flirting with it for two weeks. This prompted a celebration on the trading floor, complete with party hats. The scene at the exchange made front page headlines on many U.S. newspapers such as The New York Times. On May 3, 1999, the Dow achieved its first close above the 11,000 mark (11,014.70). Total gains for the decade exceeded 315%; from the 2,753 level to 11,497.
The Dow averaged a 5.3% return compounded annually for the 20th century, a record Warren Buffett called "a wonderful century"; when he calculated that to achieve that return again, the index would need to close at about 2,000,000 by December 2099.[19] Even during the height of the dot-com era, authors James K. Glassman andKevin A. Hassett went so far as to publish a book entitled Dow 36,000: The New Strategy for Profiting From the Coming Rise in the Stock Market. Their theory was to imply that stocks were still cheap and it was not too late to benefit from rising prices during the Internet boom.
Characterized by fear on the part of newer investors, the uncertainty of the 2000s (decade) brought on a significant bear market. There was indecision on whether the cyclical bull market represented a prolonged temporary bounce or a new long-term trend. Ultimately, there was widespread resignation and disappointment as the lows were revisited, and in some cases, surpassed near the end of the decade.
Post internet-bubble era[edit]

The Dow fell 14.3% from the mid-9,000 level to the low 8,000 level after the September 11, 2001 attacks. Exchanges were closed between September 11 and 17.
The third largest one-day point drop in DJIA history, and largest at the time, occurred on September 17, 2001, the first day of trading after the September 11, 2001 attacks, when the Dow fell 684.81 points, or 7.1%. However, the Dow had been in a downward trend for virtually all of 2001 prior to September 11, losing well over 1000 points between January 2 and September 10, and had lost 187.51 points on September 6, followed by losing 235.4 points on September 7.[20] By the end of that week, the Dow had fallen 1,369.70 points, or 14.3%. However, the Dow began an upward trend shortly after the attacks and quickly regained all lost ground to close above the 10,000 level for the year.
During 2002, the average remained subdued without making substantial gains due to the stock market downturn of 2002 as well as the lingering effects of the dot-com bubble. In 2003, the Dow held steady within the 7,000 to 9,000-point level range by theearly 2000s recession, the Afghan War and the Iraq War. But by December of that year, the Dow remarkably returned to the 10,000 mark. In October 2006, four years after its bear market low, the DJIA set fresh record theoretical, intra-day, daily close, weekly, and monthly highs for the first time in almost seven years, closing above the 12,000 level for the first time on the 19th anniversary of Black Monday (1987). On February 27, 2007, the Dow Jones Industrial Average fell 3.3% (415.30 points), its biggest point drop since 2001. The initial drop was caused by a global sell-off after Chinese stocks experienced a mini-crash, yet by April 25, the Dow passed the 13,000 level in trading and closed above that milestone for the first time. On July 19, 2007, the average passed the 14,000 level, completing the fastest 1,000-point advance for the index since 1999. One week later, a 450-point intra-day loss, owing to turbulence in the U.S. sub-prime mortgage market and the soaring value of the yuan,[21][22] initiated another correction falling below the 13,000 mark, about 10% from its highs.
On October 9, 2007, the Dow Jones Industrial Average closed at a record high of 14,164.53. Two days later on October 11, the Dow traded at an intra-day level high of 14,198.10,[23] a mark which would not be matched until March 2013.[24] In what would normally take many years to accomplish; numerous reasons were cited for the Dow's extremely rapid rise from the 11,000 level in early 2006, to the 14,000 level in late 2007. They included future possible takeovers and mergers, healthy earnings reports particularly in the tech sector, and moderate inflationary numbers; fueling speculation the Federal Reserve would not raise interest rates.
On September 15, 2008, a wider financial crisis became evident when Lehman Brothers filed for Chapter 11 bankruptcy along with the economic effect of record high oil prices which reached almost $150 per barrel two months earlier. On that day, the DJIA lost more than 500 points for only the sixth time in history, returning to its mid-July lows below the 11,000 level. A series of "bailout" packages, including the Emergency Economic Stabilization Act of 2008, proposed and implemented by theFederal Reserve and U.S. Treasury, as well as FDIC-sponsored bank mergers, did not prevent further losses. After nearly six months of extreme volatility during which the Dow experienced its largest one day point loss, largest daily point gain, and largest intra-day range (more than 1,000 points), the index closed at a new twelve-year low of 6,547.05 on March 9, 2009 (after an intra-day low of 6,469.95[25] during the March 6 session), its lowest close since April 1997, and had lost 20% of its value in only six weeks.
Bull market of 2009–present[edit]
Towards the latter half of 2009, the average rallied towards the 10,000 level amid optimism that the Late-2000s (decade) Recession, the United States Housing Bubbleand the Global Financial Crisis of 2008–2009, were easing and possibly coming to an end. For the decade, the Dow saw a rather substantial pullback for a negative return from the 11,497 level to 10,428, a loss of a little over 9%.

The DJIA from January 2000 through July 2011.
During the early part of the 2010s, aided somewhat by the loose monetary policy practiced by theFederal Reserve, the Dow made a notable rally attempt, though with significant volatility due to growing global concerns such as the 2010 European sovereign debt crisis, the Dubai debt crisis, and the United States debt ceiling crisis. On May 6, 2010, the index lost around 400 points over the day, then just after 2:30 pm EDT, it lost about 600 points in just a few minutes, and gained the last amount back about as quickly. The intra-day change at the lowest point was 998.50 points, the largest intra-day point decline ever, representing an intra-day loss of 9.2%. The event, during which the Dow bottomed out at 9,869 before recovering to end with a 3.2% daily loss at 10,520.32, became known as the 2010 Flash Crash.[26] The index closed the half-year at 9,774.02 for a loss of 7.7%.[27]
On May 3, 2013, the Dow surpassed the 15,000 mark for the first time, while later on November 18, it closed above the 16,000 level.[28] Following a strong jobs report on July 3, 2014, the Dow traded above the 17,000 mark for the first time.[29]
Record High Dow Jones Industrial Average Index Values Type | Date Set | Value | Highest Intraday | September 19, 2014 | 17,350.64 | Highest Close | September 19, 2014 | 17,279.74 |…...

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