Can The Dow Jones Keep Going Higher?
At this time of writing, The Dow Jones Dow Jones Index has grown to over 38,000, a 100-fold gain since 1928.
A lot of people are skeptical about whether it can keep climbing:
That growth hasn’t come without plenty of wreckage along the way. And I’m not even talking about the bear markets.
Not a single of the original 12 Dow Jones companies remains in the index. 10 of the original Dow 30 (1928) eventually filed for bankruptcy. Several others were booted from the index as times changed and their earnings dwindled.
Even the hundred-year-old General Electric (the final remaining company from the OG Dow 30) was kicked out in 2018.
In short- companies in the index today now are unrecognizable from those in 1928.
And that’s ok. Industries change. Consumer tastes change. Markets change.
To keep pace, there have been 57 updates (and counting) to the Dow Jones index in its history (the S&P 500 makes regular changes too). The Indices’ job is to reflect the most important publicly traded companies in our world.
So: Can the DJIA continue to grow?
I believe so and expect it to (along with all the usual growing pains!)
Why?
Because business evolves, technology improves, and progress ultimately continues.