Great infographic showing the price action for the Dow Jones Industrial Average over the past 130 years with historical milestones along the way (click on the graphic to enlarge it):

Questions for students:

• Do some additional research to find the companies that were in the Dow in 1896 and those that are currently in the Dow?
• Why do you think the chart has the title “Human Innovation Always Trumps Fear?”
• What was the longest period of time that it took the market to recover for a sharp drop or from a period of no growth?
• Pick three historical events that you think had the GREATEST impact on the Dow Jones during this period? Describe why you think they impacted the index.
• The Great Recession is generally considered the worst economic downturn since the Great Depression. Does the performance of the Dow Jones confirm that?
• Calculation: What if your distant relative had invested $5 in the Dow Jones in 1896 and left it for you to inherit. How much would it be worth today?

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Looking for investing lesson ideas? Check out our activity “Joining the Market.”

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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