The DOW closed at a 6 year low today. I wonder, what is the "proper" value for the dow.
Look at the full history:
I drew a green line representing the average value over the years. It seems that 10000 is right.
Wait, that is a logarithmic scale. What about a linear scale? Here it is with the same green line.
Looking at this the "right" value today is only just over 2000. That is a scary number.
How low do you think it will get?
From Aug. 1929 to July 1932, the DOW went from 377 to 41, down about 9 times. In Oct. 2007 the DOW was at 14093, 9 times lower puts the DOW at 1566.
Could it go that low?
I don't know. What do you think?