Seeking Guidance on the Dow Try GDPReport as inadecuate

Seeking Guidance on the Dow Try GDP

Seeking Guidance on the Dow Try GDP - Download this document for free, or read online. Document in PDF available to download.

Following the market swoon of 2008 and 2009, equity prices have enjoyed a significant rebound. Investors are understandably interested in where stocks are headed next. An interesting long-term perspective on the subject can be gained by examining the extent to which Nominal Gross Domestic Product has explained the movement of share prices, in particular, the Dow Jones Industrial Average, over time. In this report, we look at the relationship between the two metrics since 1916, updated with data through the fourth quarter, 2010. Barring any unforeseen shocks, we find strong historical precedent for the Dow to be trading in the vicinity of 15,000 in 2011.

Financial Analysis Lab Reports -

Author: Mulford, Charles W. - Jayaraman, Narayanan - -


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