The Dow Is Crashing

A Story in Pictures by Mike Maloney
April 16, 2007

On October 4th 2006, the Dow broke its old high of 11,750 set back on January 14th 2000, and from then on all you heard from the financial press was “Dow sets a new, all time, record high”… at least that’s all you heard until the correction on February 27th, 2007.

I just don’t get it. How can anyone at this point in time (including the financial press) believe they are actually making gains being invested in general equities? On February 20th, the Dow hit its “brand new, all time, record high” of 12,795, and at the writing of this article hovers at 12,560, 6.9% above its 2000 high.

A 6.9% gain over the entire 7-year period… hasn’t anyone heard of inflation? Don’t investors know that if their portfolio doesn’t outpace inflation they are actually losing ground?

The Dow is actually crashing, but if you have not yet educated yourself on the insidious ravages that inflation can have on your portfolio, you can’t see it. This is a blind spot investors must be mindful of, and guard against, if they are to prosper.

Read the whole story here and see for yourself.

The Dow Jones Industrial Average Index is an old measure of the stock market and not really indicative of the economy any more. The news media hasen’t caught up with that reality yet. Go figure.

The S&P index, the Total Market index, the Russel 5000 index and other indexs are much more informative.

If true Will.


I find this article highly misleading.
Afterall the guy is trying to sell you gold is he not?
**Mike Maloney
Gold & Silver, Inc.
**2248 Meridian Blvd., Suite H
Minden, NV 89423

I love the first two charts, not even the same time period. But sure looks dramatic. These guys area as bad as the “global warming” “hockey stick” crowd.

Oh and a later chart showing the Dow in Euros which began in 1999.
These boys are eplaying with statistics for their own purposes.
Like they say-follow the money

Ths is is little more than doom and gloom on parade. Do you remember the real inflation of the Jimmy Carter malaise days?

Cheers, Joseph things are not as bad as they sometimes seem.


Good observation. One of my buddys had e-mailed me something about the economy crashing a few months ago from this same “quack” and after reading I concluded the same things as you…basically the guy is skewing the stats to get people to by gold and silver from him. (BTW the market has been crashing for years according to him)
It does appeal to those individuals who are afraid of investing in stocks.
No different than this alleged housing bubble they have been reporting on for the last few years.

FACT: If you would have invested 100,000 on the S&P 500 index mutual funds, in 1985, you would have over 1 Mil by now, assuming that you just left it there and didn’t touch it.

Good enough for me.