There's a lot of talk on Wall Street right now about the "Roaring 2020s." It's the idea that several different factors could combine to send the stock market soaring this decade - similar to what happened in the original Roaring Twenties, when the Dow Jones Industrial Average (DJIA) increased six-fold, from 63 in August 1921 to 381 in September 1929. And in fact, if you look at the two decades, the similarities are pretty striking. The 1920s saw the mass production of the automobile, which became a transformative technology, while telephones and radio proliferated. And the widespread adoption of electricity revolutionized industries and ordinary living. Brooms and carpet beaters gave way to the Electrolux vacuum; the icebox was replaced by the Frigidaire. Silent movies kicked off a new industry, while medical breakthroughs like new immunizations and vitamins became the norm. There was also a growing sense of optimism. The Great War was in the rearview mirror and peace prevailed. That meant Americans could spend or invest their money instead of saving it for the war effort. And that's a lot like how the current decade is shaping up. Like the original Roaring Twenties, today we've got... |
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