This was true to the past. However, now the FED is the player. So all rules are played by the FED. DON"T FIGHT THE FED. They want to prop this up. Go with the trend.
Are you sure? If in 1896 you bought a share of each of the then DOW components, today your returns probably would be negative. I think the only original DOW that is still in business is GE, all the others are out of business a long time ago, and GE is not doing too well either.
If you bought the Dow and not the companies of the Dow. Yes. Ppl don’t realize that companies get kicked out and replaced all the time for the Dow and spy. For example ge finally got kicked out of the Dow after more than 100 yrs in the Dow.
According to this Fool Bros article, $1K put into GE in late 1890's would be worth 10.7 million. https://www.fool.com/investing/2019/12/02/if-you-invested-1000-in-ges-ipo-this-is-how-much-m.aspx
The etf DIA didnt exist 100 years ago a mutual funds were well after these companies were either folded into a buyout or went under so how could you have bought the dow before DIA and mutual funds to cash in on those average 7-8% gains???
Futures falling hard...I believe it's still the virus that's causing the drop. If you all remember bird flu and sars...etc. they usually come up with a cure in a month or two and everything is forgotten about and stocks resume their triumph rally