On March 9, 2009 the Dow Jones Industrial Average (DJIA) closed at 6,547.05.
Yesterday, November 10, 2009, the DJIA closed at 10,246.97.[1]
This rise represents a simple return of approximately 56.51%.
On an annualized compounded basis the return is approximately 93.86%.[2]
If the DJIA continues to rise at this rate then on this day next year it should open at approximately 19,864.98.
Just thought you may want to know.
PS: After reading some inane comments I just had to write a postscript. There is a point to this post: the rate is unsustainable. I thought that was obvious. Some people apparently didn’t. Unbelievable. No wonder bubbles happen.
[1] From Yahoo Finance historical price database.
[2] See http://en.wikipedia.org/wiki/Compound_interest. I used the 3rd version of the simplified calculation and solved for i. There are 247 calendar days between 3/9/09 & 11/10/09 including the last day. See http://www.timeanddate.com/date/duration.html
