(Glassman, whose journalistic career includes a stint as a moderator for CNN’s Capital Bande in the mid-1990s, now runs a public affairs consulting firm. Hassett most recently served as a senior White House economic adviser to President Donald Trump.)
In their book, Glassman and Hassett argued that the Dow could hit 36,000 as soon as 2005. That did not happen. Shares fell in the final months of 2000 when the dot-com bubble burst. The market tumbled again after the 9/11 terrorist attacks led to a recession.
Investor sentiment was further dampened by significant accounting scandals at Enron, Worldcom and Tyco, once considered market leaders. The Dow reached a low of about 7,200 in 2002. The first two companies
The stock did not return to bubble levels until 2006, and the market peaked again in October 2007, when the housing market began to tumble.
This eventually led to the 2008 implosion of the Lehman Brothers and the Great Recession. The Dow index fell to 6,470 in March 2009. But apart from a few minor corrections in the last few years and a brief bear market in March 2020 at the start of the pandemic, it has mostly gone up.
But the Dow, which has now risen 18% this year, is still arguably the most famous target for ups and downs on Wall Street. Dow was first launched in 1896 with only a dozen companies. It expanded to its current membership level of 30 firms in 1928.
The Dow now reflects the fact that the US economy is more about technology, consumer goods and financial services as opposed to manufacturing.