Go on Yahoo finance, stock center, type in DJI (DOW JONES INDUSTRIAL) and click on it, then click on interactive chart, then click max to see the last 35 years. You will see the image for yourself! I couldn't believe it when I looked at it! (I added the arrows and comments to make it look more visual)
This chart depicts the Dow Jones ndustrial average over the last 35 years which composes of the 30 largest corporations in the U.S.. The price of the DJI stock is in blue, to the right is its corresponding price for a share of stock. On the bottom where the red and green lines are located is the volume. This represents the amount of shares of stock being traded. Green represents more buyers than sellers, while red represents more sellers than buyers. Notice how price is reflective on volume. Increase in stock price stems from increase in volume of shares being traded, more people entering the market. Steady price stems from a steady volume of shares being traded. Notice since 2009 volume has decreased but the stock price has almost tripled. Less people are in the market, yet the price has gone up? This must partially be due to the Federal Reserve issuing Quantitative Easing 1, 2, 3. In conclusion, the Federal Reserve's decision to lower interest rates to zero percent has had some consequences, not so much in the short term, but in the long term, our Monetary Policy has been put at a large risk of financial collapse due to the increase in expenditures of debt issued to the public. This will place a major burden on the families of the next generation of workers in the U.S. economy.
