The stock market is on an epic upswing. Here's why it probably hasn't benefited you
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The Dow Jones industrial average cruised past another milestone Wednesday — the 20,000 level, further evidence of the long bull market that has lifted share prices since the depths of the financial crisis.
The index closed at a record 20,068. Since the November elections, the Dow and the broader S&P 500 are up 9.5 percent and 7.4 percent, respectively.
The stock market rally has been remarkably durable so far, withstanding the banking crisis in Europe, the Brexit vote, natural disasters, terrorist attacks, periods of disappointing growth in the U.S., and the polarizing U.S. presidential election.
Crossing the 20,000 threshold isn't significant in itself. It's simply a number. But it's a round one with all those juicy zeroes. So let's take a moment to examine why stocks have done so well in recent years, why the Dow is an imperfect proxy for the market and why the bull market hasn't changed the economic fortunes of most Americans.
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The crisis, the Fed and the corporate moneymaking machine
Over the long term — meaning decades or even a century — stocks are by far the best-performing financial asset. Adjusted for inflation, stocks have returned an average of 7 percent a year.