With Alphabet (GOOGL) and Amazon (AMZN) racing tick for tick towards the $1,000/share level but coming up just shy today, we just can’t help but be reminded of another run towards the 1,000 milestone 51 years ago. For the sake of the two stocks and the overall market, though, we hope that this time around, the $1,000 level isn’t nearly as tough a nut to crack. The battle for 1,000 we are talking about from 51 years ago was the Dow Jones Industrial Average. Back in 1966, after a rally of nearly 20% off of its June 1965 lows, the DJIA was knocking on the door of 1,000 but came up just shy of the mark, closing at 995.15 on 2/9/66. While the DJIA didn’t cross 1,000 on February 9th, we can’t help but think that most people felt it was just a matter of time before the 1,000 level was breached.
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Technically, “just a matter of time” was absolutely right, but we doubt anybody expected how long it would be. Not only did the DJIA not cross 1,000 in February of 1966, but it didn’t do so in March or April either. For that matter, it didn’t even crack 1,000 in all of 1966. It didn’t cross 1,000 in 1967 either. 1968? No. 1969? Nope. 1970? Wrong again. Actually, in May 1970 the DJIA wasn’t even in the 900s, but instead it was trading as low as 631.16 on 5/26/70.
So when did the DJIA finally cross 1,000 on a closing basis? That didn’t happen until November 1972, a full six and a half years after it first tested 1,000. Just because Alphabet and Amazon didn’t do it today, let’s not get greedy. Hopefully, we won’t be waiting until 2022!