The Dow is within “striking distance” of reaching 20,000, a milestone that many investors may feel as though they have been waiting forever for (source). As we are potentially days away from the arrival of the Dow 20,000, and while this is merely just a number – a big, round number – we consider the history of the Dow Jones Industrial Average and the time it took to reach some of its past milestones.
Historically, the index has struggled reaching major milestones. The Dow first reached 100 in 1906, but after many fluctuations, it wasn’t until the mid-1920s before it convincingly traded higher than that level, and it permanently broke above it in 1942 (source).
This was the case for the Dow 1,000 as well. It initially hit the 1,000 mark intraday in 1966 but did not close above that mark until November 1972. It wasn’t until 1982, 16 years after initially reaching 1,000, that the Dow finally traded above that mark for good (source). It took roughly 15 years from first closing above 1,000 in 1972 for the Dow to progress another 1,000 points to the 2,000 milestone, yet only four years to go from 2,000 to 3,000 points.
The Dow first hit 10,000 in 1999, but the average fell below that level for 11 years, until 2010 when it took residence above that milestone. Now, seven short years later, the Dow is about to hit 20,000.
The chart below shows the important Dow milestones and additional key dates that defined what the Dow is today: