Gauging the Dow’s Record Highs

The Dow made another record high close yesterday.

Or did it? Remember, the Dow is price weighted, which makes
its price behavior a bit odd — at least when compared to market cap weighted indices  like the S&P
or the Nazz.

Bob Bronson makes the following observation regarding the Dow’s record highs:

"While the DJIA 30 stock index closed on 11/15/06 at 4.5%
above its all time high, only two components made record highs, with four more
less than 3% below their all-time highs. 17 (57%) of the 30 made their all-time
highs more than five years ago, and, on average, they’re 27% (median 30%) below
their individual all-time highs    ."

Here are the details:

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Click for larger table display

Dow_highs

 

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Source:
Tracking the Dow accurately
Robert E. Bronson, III
Bronson Capital Markets Research
http://www.financialsense.com/editorials/bronson/main.html

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Blog Spotlight: The Mess That Greenspan Made

For the next edition of our series Blogger Spotlight:  Tim Iacono and The Mess That Greenspan Made.
Tim is a software engineer in his mid-forties, living in Southern
California. He calls his blog is a "vain attempt to stave off a
mid-life crisis, and here’s hoping that it’s going to work."

This is part of our ongoing short list of excellent but somewhat overlooked
blogs that deserves a greater audience. Expect to see a post from a
different featured blogger here every Tuesday and Thursday evening,
around 7pm.

Mess_that_greenie

This is Tightening?

Much has been made of the "tightening" by central
banks around the world, particularly the multi-year "baby-step" therapy applied
to short-term interest rates here in the U.S.

This
treatment was just concluded a few months ago under the watchful eye of Fed
Chairman Ben Bernanke – the baby steps weren’t the new Fed Chief’s idea, but he
is saddled with what they have produced.

Having wondered what effect these rising rates have had on the creation of both
consumer debt and new money, the construction of a chart showing all three laid
together is a task that has sat near the top of the To Do list around here for
some time.

It can now be checked off.
Nearly all of this data is available at the Federal Reserve website. The only
part for which one has to look elsewhere is the last six months of M3 Money
Supply – the central bank stopped divulging this data earlier this
year.

The latest M3 data is now available in reconstructed form at Now and Futures and John
Williams’ Shadow
Government Statistics
.

The trend is still up -
surprise!

Read More

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