The Dow Hit 40,000. It Doesn’t Matter

Today’s Points

  • The Dow Industrials broke through 40,000 for the first time and then fell back;
  • It doesn’t matter because the Dow is pointless;
  • But it is a little interesting that the Dow has exactly matched gold since it first hit 20,000;
  • AND AI has something to be said for it when it gives us the Beatles’ Now and Then

Dow and Then...

Huge news from the markets today: The Dow Jones Industrial Average hit 40,000 points for the first time. The number is splashed across financial news sources the world over (including Bloomberg), even though the index closed back below the threshold by the end of trading.

Why shouldn’t this matter? Let me count the ways:

  • The Dow is a meaningless index
  • It tells us nothing
  • Very little money is tied to it
  • Round numbers shouldn’t matter anyway

The only reason people think the Dow matters, in my experience, is that their trusted news sources tell them so. And the reason financial journalists treat it as news tends to be that others will do so. Many people think we should watch the Dow because other people think it matters. It’s very hard to find a reputable person who will admit that they themselves think it matters. Now to try to prove some of those assertions: