Sunday, 29 March 2020

djia = σp/d

Having muddled through the Asian Financial Crisis of 1997 and the collapse of the Russian rouble the following year, the US stock market index the Dow Jones Industrial Average, that gauges the performance of a select thirty large, publicly listed companies, on this day in 1999 a celebration was held on the trading floor when for the first time the Dow closed above ten thousand points.
Bolstered by faith in a strong dollar—the world’s reserve currency—and mergers in the petroleum industry and what was decried presciently by some as an “irrational exuberance” in the seemingly unbridled technology sector, investors at the time would scarcely realise that they were partying at the apex (or nadir, depending on one’s point of view) of the Dot Com Bubble. The speculation fuelled growth peaked in March 2000, once borrowing became more expensive and credit tighter when national banks changed their lending practises once the industry had weathered y2k without significant disruption, before surrendering a gain of nearly four hundred percent by October 2002.