Why the Dow Doesn’t Matter

Jeff Siegel

Written By Jeff Siegel

Posted September 26, 2017

Dow 1 million.

Can you imagine?

To be honest, I can’t believe the Dow is trading as high as it is today.

But Warren Buffett has gone on record saying that the U.S. is in pretty good shape, and even 100 years out, stocks are a solid bet. He also said that in 100 years, the Dow will be over a million.

While I’m the last person to second-guess the Oracle of Omaha, this is a bit of a stretch.

And let’s be honest: In a hundred years, today’s bull market will be about as relevant as whale oil in our modern economy.

In One Hundred Years

Yes, this year we’ve seen the Dow hit record highs.

Wall Street robots and D.C. speechwriters are loving life, and things are great.

Never mind the fact that household and personal debt continues to rise.

Never mind the fact that most folks are still living from paycheck to paycheck, unable to save or invest anything.

And don’t even get me started on the student loan time bomb.

At the end of 2016, total student loan debt came in at just over $1.3 trillion. Student debt is now actually the second-highest debt burden in the country next to mortgage debt.

When that house of cards comes crumbling, who knows what’s going to happen?

Of course, in the window of a hundred years, whatever damage the student debt bomb does won’t be particularly relevant by the time we get to 2117.

And that’s really my point.

Yes, despite the Dow hitting record highs and the Washington elite telling us how great things are, little of this is relevant in terms of where we’ll be in a hundred years.

What Do YOU Care About?

One hundred years ago, no investor would’ve predicted that we’d be able to buy and sell stocks in a matter of seconds using something called the internet.

No one would’ve predicted that there would be an International Space Station floating in space, where reusable rockets made by a guy who also builds electric cars would make regular deliveries.

No one would’ve predicted that a woman would be the Press Secretary for the President of the United States, who, worth noting, took over after a black man served as President of the United States for two terms.

Look, I love making predictions as much as the next guy, but in a hundred years, there might not even be a Dow.

Of course, none of this really matters to us as investors.

Although the idea of Dow 1 million makes for good headlines, it doesn’t help us create wealth today. And, quite frankly, that’s all I care about.

Get Focused

Let’s just cut to the chase, shall we?

There are three areas you should be focused on right now if you really want to make some real money.

  1. Legal cannabis
  2. Digital currency
  3. A handful of microcaps that no one’s paying attention to right now

This is where you’re going to get the most bang for you buck today — not a hundred years from now.

And this is where my focus is, not on where the Dow will be in another century.

Hell, I don’t much care what the Dow’s doing today.

The Dow is considered a proxy of U.S. economic health. Bur really, it’s a representation of that which has already happened.

In other words, before the Great Recession hit us with all the subtlety of a brick to the face, the Dow was flying. Only after the proverbial poop hit the fan did the Dow tell us “things aren’t so good.”

People who continued to point to the Dow as evidence of a continued bull market got hit the worst.

Now, I’m not saying we’re about to get knocked over with another global economic implosion, but the Dow has had little to do with our ability to profit from the legal cannabis boom or the insane profits we’re seeing in the digital currency space.

Warren Buffett thinks the Dow will be at 1 million in a hundred years. And maybe he’s right.

But in a hundred years, we’ll all be worm food. So who cares?

All I care about is what’s going to make me money now.

And unless you hate money, this is where your focus should be, too.

To a new way of life and a new generation of wealth…

Jeff Siegel Signature

Jeff Siegel

follow basicCheck us out on YouTube!

follow basic@JeffSiegel on Twitter

Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

Want to hear more from Jeff? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on. 

Angel Publishing Investor Club Discord - Chat Now

Jeff Siegel Premium

Introductory

Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.