As far as specific benefits for the Dow reaching 20,000? There really are none. Technically the actual number is completely arbitrary. It's the change in the number that is important. The Dow is just and index of 30 large publicly traded companies. It's used as a performance metric to show how these large companies are performing on the market (which is a metric for economic performance). There are several indices that are used to give a broad idea of the market that single stocks cannot provide alone. Other examples are the S&P 500 (which is one of the best indices), the Nasdaq, Nikkei 225 (which is Japanese index that is fairly important). They are all different, but they are all used for the same thing which is to provide investors with a broader picture of the market (or specific parts of the market). In the case of the Dow, an investor can take a quick look at the index and see how well large companies in the United States are performing based on the index. They don't have to go though and look at all 30 stocks individually. I should add that the individual stocks of the Dow still go up and down independently of the index itself. The Dow is just the average measure of the performance of all 30 stocks as a whole. I will however say that should the Dow hit 20,000, it will be considered a milestone event. It may not be this week as Thursdays and Fridays have historically trended lower than the first half of the week, and futures a down just a bit since close. However investors are very very happy right now. The trading volume for Dow stocks is almost four times as high than it has been in the last three months which means a there is a lot of buying and selling going on. Plus, the Fed has decided to raise interest rates which investors see as a major sign of economic improvement and stability.
The Dow Jones Industrial Average (DJIA) is 30 common stocks weighted averaged:
The stocks have changed a bit over time.
It is meant as an indicator of large companies stock prices and market capitalization, also considered the value of the companies.
There are other market baskets of stocks, such as S+P 500, Utilities indices, Wilshire 5000, NASDAQ Composite, Russell 2000 all of which have been rising in value.
If sold to cash, the rich are getting richer, and people with money invested on average see paper gains until cashing out and see what happens.
20,000 is a nice round number.
The Russell 2000 reached 1,392.71 on December 9th as a smaller sized company set much broader index:
It means stock prices are higher. Price to earnings is high. There is an exuberance in stock trading. Company performance doesn't seem to be up at this level. it's nice to see stocks higher if you own them or in mutual funds that own them. Just beware there can be dips as well.
Joy and happiness, irrational exuberance as Jimmy Carter would say. It is about as important as when your investments reach a round number like your first 10K or first 100K or first million, you aren't suddenly rich, you were about as rich yesterday as tomorrow.
I started watching the Dow at about 2,800 so it would be cool to see it hit 28,000.
It only benefits those who own stocks.
Otherwise, it is only something for the record books.
You have a 401K or and IRA don't you? Most of us do.
Its an arbitrary number, nothing more.
none if you don't own stocks
it would be a great time to take profit….