This morning, I was doing a bit of advance planning for our dinner this evening. It’s Friday, which is traditionally homemade pizza night at our house, but tonight we were intending to use some left-over beef stew and transform it into a beef pot pie using a pie crust and some corn starch for thickening.

As I dug around in the cupboards and refrigerator to make sure we had everything on hand, I came across a few scary outdated items in the back of the refrigerator. They looked scary. They smelled scary. And, sadly, they headed right to the trash can.

One of the most disappointing things at our house is food that’s gone bad. It finds its way to the back of the refrigerator or cupboard and, eventually, gets too old to use. I look at such things with disappointment, as it’s good food simply going to waste.

Throwing away food – just like throwing away anything else – is a waste of resources. Our money and/our our time was invested in acquiring and preparing that food and simply throwing it away means that your time, money, and energy went to nothing. That’s a conclusion that doesn’t make anyone happy.

Of course, much like anything else, food can sometimes be recycled to a spectacular second use. Before you decide to toss out the food, give it a serious second look and ask yourself if the trash can is the best ultimate destination for it.

Quite often, the food really is bad and needs to be discarded. If something is moldy, I don’t mess with it (well, excepting certain kinds of cheeses, of course – blue cheese is all about the mold). If something has a smell that indicates that it’s gone wrong, I’ll just toss it. If it’s opened and past the date, I’ll almost always toss it immediately.

Sometimes, though, food that I’ll pass on in its current form has value if it’s used in another context. Here are some examples.

Stale bread If you have stale bread that’s gone dry and hard, get out the grater and grate it into bread crumbs, then save those crumbs in a jar. After all, this is exactly what bread crumbs are. Bread crumbs make a fantastic breading for fish, chicken, and vegetables, helping to seal in the moisture and flavor while making a crunchy outer shell.

Old fruits As long as they’re not genuinely rotting, most over-ripe fruits can easily be turned into an excellent bread. One great example of this is banana bread, which just requires a loaf pan, a spoon, some over-ripe bananas, a bit of butter, sugar, an egg, vanilla, baking soda, and flour. Just mix them in a bowl with a spoon until it’s consistent and put it in a loaf pan. You can make something very similar with many overripe fruits – I’ve made strawberry bread, pineapple bread, and zucchini bread and all were good (we just tend to eat a lot of bananas, so banana bread is a regular thing).

Old vegetables I save these in a small box in the freezer. When I have a full box, I’ll use the vegetables to make a vegetable soup. I’ll just put all the vegetables into the crock pot, add water until it’s got about half an inch of liquid over the top of the vegetables, and then season the whole thing like crazy. It makes for a pretty good – and pretty healthy – meal.

Another old vegetable and fruit tactic Add them to a compost bin. If you don’t have one, ask around, particularly among your gardening-oriented friends. It’s far better to return the leftover materials to the earth than to put them in the trash and watch them head to a landfill. You can use coffee grounds and eggshells in a similar fashion.

Here’s the real message: don’t look at old food as something to immediately be thrown out. Sometimes, it’s a resource that can be used in future meals. It’s far less wasteful to approach things in this fashion, which means that you’re not only conserving your own resources, time, and money, but you’re also sparing the earth.

The holiday gift-giving season is upon us once again. For many of us, that means stress. What gift can we give to the people we care about that actually means something? Why do the holidays have to be so expensive after we buy gifts for everyone on our Christmas list? Then, on Christmas Day, we have to find polite things to say about the unwanted gifts we get and we find ourselves with a bunch of additional stuff to take care of whether we like it or not.

All of these problems can be solved by one simple change in your perspective about gift-giving this year: give experiences instead of things.

What do I mean by this? Instead of giving a material gift that would require you to spend money on something you’re unsure they’ll like and them receiving something that they’ll have to now take responsiblity for, give them something that isn’t material.

Six Ideas for “Experience” Gifts
Here are six quick ideas to get you started, but there are hundreds more just like it if you let your creativity go.

For a child, give a field trip. This could be a trip to a zoo, to a kid-friendly science center (like the wonderful one in Des Moines, Iowa), a wilderness hike, or to a baseball game. You’ll handle all the logistics of the trip for them.

For a food lover, offer a home-cooked version of a meal they’ve longed for. Try making them something challenging like coq au vin or beef bourguignon. Get out your fine china and linens for this dinner, too – make it something special. It could be a romantic gift for a food-loving couple.

For an art lover, plan a trip with them to the art museum of their choice later in the year. Buy the ticket and handle the transportation yourself.

For a spouse, pledge to do the dishes for a year – or give them a few weekends where they can do whatever they want (with or without you).

For a gamer, give them some invitations that allow them to choose a game to play with you. This is a great way to understand someone’s hobby better (and perhaps find it interesting and exciting yourself).

For a parent, give a free night of babysitting. To them, this means an evening doing whatever they’d most enjoy doing without having to worry at all about their children.

Barter for Services
If you have some good ideas for experiences but don’t have the cash, look into a barter with the person that could provide that service. For example, you might be willing to work 40 hours at a museum or a zoo for a certain number of tickets. Perhaps you could provide IT services at a spa in exchange for some gift certificates there. Many businesses are quite willing to offer credit in exchange for your skills and/or your time. Take advantage of that.

The Presentation
Many people balk at such gifts because they’re unsure how to present it. With a home printer and some time, you can create an elegant presentation of any gift.

First, spend a little on a decent stationery set that you can use for many such gifts over the long haul. Look for something tasteful and simple that doesn’t necessarily have to be holiday-oriented.

Second, use a straightforward layout in your word processing program of choice. There are thousands of templates for Word, most of which are compatible with most word processing programs out there.

Fill out the document with the details of the gift, print it on the best printer you have access to, and also print the envelope with the recipient’s name on it in an elegant font.

Here’s the kicker: include some visuals within the envelope. A brochure that shows what the event is all about is perfect, as is a photograph that provides a visual reminder of what you’re going to do. It can even be something as interesting as snapshots from a past event you’ve enjoyed together.

Why This Works
Aside from the fact that it’s less expensive than giving traditional material gifts, giving experiences works for three reasons.

First, it doesn’t give a material item that the other person will have to deal with. It’s not going to wind up needing maintenance or taking up storage space in their home or requiring a trip to customer service.

Second, it will stand out in a positive way in comparison to the items they receive. When you receive several items for Christmas, something distinct like this will definitely stand out from the crowd. Most of the “experience” gifts I’ve ever received still stand out for me.

Third, it often allows you to experience the gift together. If the gift is an event you can both participate in, it becomes a shared memory, something far beyond what a material gift can offer.

For us, unfortunately, “experience” gifts are a bit of a challenge since we don’t live near many of the people we exchange gifts with. Of course, we have another solution for many of those folks for frugal, unique Christmas gifts… but that will have to wait until next week.

Over the last month, I’ve mentioned a technique I call “the five whys” two or three times. The technique itself is simple: when you see something in your life that’s not working like you want it to, you start asking “why” until you come to something where you can’t say “why” any more. When you find it, you’ve diagnosed the core problem – and, quite often, the solution to that problem is surprisingly simple.

Three Examples
In order to illustrate this, I thought I’d use three real examples from my own life recently, as I’ve been using “the five whys” more and more lately to uncover the roots of some of the problems in my life.

Example 1: Crunching the Numbers
I usually calculate my net worth in a spreadsheet because I like the layout and the reports, but I don’t update it as often as I might like.

Why? It takes quite a lot of time to dig out all of those numbers.

Why? They’re stored in a lot of different databases and on a lot of different websites, which I have to visit individually to extract the numbers.

As a result, I’ve decided to give Quicken a shot again. In the past, I used Microsoft Money for about a year until I found that I didn’t like the reports it generated – I preferred what I had in my own spreadsheet. Quicken may be able to provide better reports (it looks like it will from the reviews I’ve read) and, even if it doesn’t, it’ll make it easier to retrieve the numbers I want to see. (And, yes, I’ll be posting a review of it in the near future.)

Example 2: Broken Exercise Routine
During the final push to complete my book, I abandoned my regular daily exercise routine because I needed absolutely every spare minute. Since I finished it, I’ve been having difficulty getting back into that exercise routine.

Why? Every morning, I feel fairly pressured to write content for The Simple Dollar instead of exercising.

Why? I have (post-book) writer’s block and my usual protection against it (unpublished posts that I have in reserve) isn’t there any more, because I used many of those in the final push to finish the book and the few days afterward when I simply needed to do something besides write.

Why? I’m lacking the “idea juice” I usually have and without it, my entire daily routine is disrupted.

So, my solution is to find ways to reinvigorate my creativity. Over the last few days, I’ve been spending time on brainstorming exercises, simple writing exercises, and so on, as well as just reading a lot – all of that while avoiding the keyboard. It’s really starting to help. Then, as I get back in the flow, I’ll be able to build up a backlog of articles again, enabling me to feel free to exercise in the mornings.

Example 3: Laundry Backup
We often wind up with a large backup of laundry, then find ourselves doing several loads on a single weekend day.

Why? Our laundry routine doesn’t work.

Why? One big problem is that our laundry room is literally as far as possible in our home from our bedrooms, plus the laundry room is back in the corner near the guest bedroom. Out of sight, out of mind. As a result, we often don’t even think about the laundry until the evening, when we’re just about ready for bed. Then, in the morning rush, we walk right by it.

Why? It’s more convenient to just ignore it in the morning and we’re too tired to deal with it in the evening.

A solution presents itself. Fill up a laundry basket in our bedroom in the evening and place it right in front of the door so that we’ll trip over it in the morning if we don’t deal with it. Then, when we go downstairs in the morning, we carry the basket down and we’re pretty much ready to drop in a load of laundry on our way out the door. I’ve started doing this and it actually really works.

Why It Works: The Path of Least Resistance
In the normal routine of our lives, we almost constantly take the path of least resistance when it comes to choosing what to do. What’s the path of least resistance to get from where we are now to where we want to be? We do this over and over and over again.

The only problem is that when we choose this “path of least resistance,” we often aren’t choosing the best path. If only we would choose to take some extra effort right now to remove some of that resistance, we might find a much more effective path to get where we want to go.

For example, the “path of least resistance” for me to figure out my finances was to use a spreadsheet because Microsoft Money didn’t do what I wanted. Of course, as I found out, the spreadsheet itself had significant resistance, so now I’m trying to use Quicken along with my spreadsheet (and maybe not even with my spreadsheet) to reduce that resistance, making the whole thing much more usable.

Another example: the “path of least resistance” for doing laundry was to just let it build up then do a bunch at once. The only problem was that we essentially would devote an entire day to laundry (usually Saturday was laundry day). I can reduce that big resistance by just filling up a basket before bed (a tiny resistance) and then carrying it down in the morning (another tiny resistance).

When you do the “five whys,” you’ll eventually find your way to the resistances in your life that are keeping you from what you want to be doing. When you dig into those resistances and find ways to break them, you make it much easier to go down the path you want to go down.

Why do you spend so much money each month? You might dig down and find that certain places tempt you, so just by avoiding them, you don’t spend as much. You might find that certain friends convince you to spend more, so focus on spending more time with your other friends.

Why aren’t you succeeding at work? You might dig down and find that it’s because you’re afraid to volunteer for projects, so you might overcome that by simply resolving to take the plunge on the next project that comes through. You might find that the politics of your workplace encourage you to avoid stepping up or that the entire company is poisoned, which might indicate it’s time to move on in your career.

You can use “the five whys” in every aspect of your life. If you spend some time thinking through the problems in your life in this way, you’ll almost always dig down from something that seems insurmountable to something that you can fix. That fix might lead to the big change you want or it might not, but no matter what, it’ll almost always change the dynamics of your life for the better.

Before he passed away a few years ago, my uncle Ken (who I still miss greatly) was a fanatic shopper at dollar stores. He did most of his shopping at a pair of local dollar stores, where he would buy virtually all of his household supplies and quite a bit of his food. He was also incredibly generous – he would send me huge care packages when I was at college with a selection of many of his finds (teas, hot chocolate packets, etc.).

Unfortunately, he also had a “pack rat” compulsion – he was always buying more and more and more things to fill (and then eventually over-fill) his home. In the end, the dollar store wasn’t really a bargain for Ken – he eventually had so many tchotchkes and stored bulk goods that not only was he often broke, his home was overloaded with stuff.

Quite often, the stuff was of (at best) moderate quality as well. While he’d often find some incredible bargains, he also would buy a lot of things that I would identify as junk (but I suppose that one man’s trash is another man’s treasure).

After Ken’s passing, he left behind enormous piles of various dollar store purchases, most of which were simply tossed out. It was almost painful to watch all of those things that he had invested his time and energy in simply get handed out and thrown away.

Earlier this year as part of a discussion on haggling, I outlined a similar tale in which a woman who bought “plastic doodads” (her words) in bulk at the dollar store under the belief that she was getting a bargain.

To me, Ken’s story defines what a dollar store is. It’s a place where you can occasionally find tremendous bargains on the things you need, but the cost threshold is so low that quite often you end up buying far too many impulsive things. It’s easy to convince yourself to throw a thing or two into your basket that you don’t really need because, after all, it’s only a dollar, right?

Does this mean I don’t ever go to the dollar store? Of course not. The dollar store can be a good place to find great values on certain things. However, you need to approach it with a plan.

First, look for the staples you already use. Dishwashing detergent. Diapers. Bath soap. Hand towels. Focus on finding the dollar store version of the things you already use.

Second, try the store brands, but don’t expect greatness. I’m always willingg to try a store brand if it means I’ll save significant money, but quite often I’ll find that the quality of the item isn’t up to snuff. Trash bags that rip, aluminum foil that’s too thin, and plastic wrap that doesn’t stick to anyting but itself isn’t worth anything, even if you’re “saving” money by buying it.

Third, avoid the other stuff. Most of the items in a dollar store are there to convince you to make an impulse buy. Ignore all of it. Focus exclusively on the list of things you want to check out – your staples. If it’s not on that list, don’t buy it. Don’t even look at it. If you end up buying something you didn’t intend to buy when you arrived, it’s not a bargain. It’s a loss of your hard-earned money to an impulse to acquire stuff.

Dollar stores can be really useful for finding bargains on certain items. However, they’re prone to impulsive buys and low-quality items that can end up quickly undoing any benefit one might get from shopping there. If you go there, go there with a plan and you can come out a winner.

We all do it. When we know we’re being watched, we’re on our best behavior. We often tend to perform better and we usually tend to make better choices, too. Then, when we think the focus is off of us, we relax and sometimes make different choices.

This effect, in which we act “better” when we believe we’re being observed by others, is called the Hawthorne effect, and it’s surprisingly powerful.

It’s easy to see examples of this almost every day in our lives. If we’re out with people we don’t know well and are trying to impress, we’re going to focus intensely on putting our best foot forward. We’ll dress well, attempt to be good conversationalists, and try hard to put positive character traits on display. On the other hand, when we’re home alone watching television, we’ll often put on old raggy comfortable clothes and curl up on the couch without combing our hair or anything like that.

Let’s carry that forward a bit. Let’s say we’re at a store with a friend and that friend is watching us as we make up our mind about whether or not to make a purchase. Simply by observing, that friend has an effect on whether we buy.

I see it even in my own life. If my financially conservative friend John is watching, I’ll tend to not buy the item and walk away. On the other hand, if one of my other heavy-spending friends is watching, I’ll lean more towards buying the item. The observer doesn’t have to actively participate at all in my purchase – simply by being there, they impact my choice.

In short, I tend to lean towards a “best behavior” in the eyes of whoever is observing me. That “best behavior,” though, changes based on who is doing the observing.

Some of you may scoff at this at first glance, but imagine yourself in situations in your life and how your actions and choices in those situations change depending on who is there and who isn’t.

For me, the intriguing part of the Hawthorne effect is how it can reinforce positive behaviors in your life. Just choose to surround yourself with people who reinforce the behaviors you want to exhibit.

So, for example, if I’m going to go do some comparison shopping for Christmas gifts with a friend, I’m far better off choosing to go with John than with other people. Why? John’s mere presence encourages me to dig for values in the gifts that I buy and not just go for the splashy gift, while others, by their mere presence, will encourage me to just go for the “awesome” gift without strong planning or thought.

If I’m trying to break a habit of drinking socially, I’m better off spending social time with friends that don’t drink. Again, just by their powers of observation, I’m more likely to make the appropriate choice. Of course, the reverse is true – if I enjoy drinking socially, I should choosse friends who also enjoy it.

If I want to go the extra mile at work and look like a winner, I should try to get into group projects with people who are really productive – the “stars” of the company – instead of people who just sit around and complain. On the other hand, if I’m just interested in passing the time at work, I should seek out those who are doing the bare minimum.

What kind of person do you want to be? It’s much easier to find the path to where you want to go if the people around you are on that same path. Just by their presence, you’ll innately want to please them with your actions, so you’ll make choices with them that lead you towards your own personal goals.

The Hawthorne effect really works. More and more, I gravitate towards friends and work associates that are the kind of people that I want to be.

After turning in my book a week ago, some of my friends who had already published books wrote to me with an interesting point. “After your book is done,” they said, “you’ll find that you go through a bit of ‘writing burnout.’ You won’t want to write anything for a while.”

At first, I didn’t think this was true, as early last week, I got a lot of writing done. Now, though, I know what they mean. In some ways, it feels like the well is dry.

I’m not saying I have no ideas – I have plenty of those. It’s just that when I sit down with an idea right now, the words don’t flow as quickly as they once did. It’s almost as if I pumped too much water out of the well for a while and now I have to pump really hard to get even a slow flow of water.

So, I’ve been using the time to read, write down ideas, and follow up on other pursuits until the flow gets back to normal – which, according to some of my friends, it will in a few weeks.

For now, here are some interesting articles from other sites.

Do What Works For You I agree with this idea to an extent, but I can also see how it can be detrimental. If you always do it your way and ignore what others have done successfully with the same task, you might find that you’re doing it pretty poorly. Do what works for you – but never stop learning new things. (@ get rich slowly)

Saying farewell to a hobby, part two I’ve had to let go of hobbies several times in my own past and it’s always been difficult. Part of me has wanted to hold onto the items from that neglected hobby as some sort of nostalgia – but that’s a really bad idea unless you have acres of storage space. (@ unclutterer)

Act the Way You Want to Feel For a large part of my life, I thought this kind of thing was complete foolishness. Until I tried it. It works almost all of the time. If you consciously act happy over and over again, you begin to feel happier about your life. (@ happiness project)

How Do I Make My Resume Stick? This article describes the “keyword test” – figure out what words the person hiring is looking for and make sure those words get noticed on your resume. (@ fast company via behance)

Secrets of Telemarketing From an Industry Insider My sister-in-law was a telemarketer for a while. She was quite good at it, but she loathed the work. Perhaps I should convince her to write a bit of a “tell-all” about it. (@ wise bread)

How to Make Money as a Soccer Referee This is an excellent, detailed guide on how to turn a passion into a nice side income. I know some people who do such refereeing in different sports for a living and they love it. (@ free money finance)

I like keeping score.

Keeping score is an easy way for me to know how well I’m doing. It lets me judge, in a very clear way, whether I’m improving and whether I’m making forward progress towards my goals.

For a long time, I was obsessed with keeping score in various aspects of my life against other people. I’d keep score with the various gadgets we had. I’d keep score with who had the best trading card collections. I’d keep score with who had the best-stocked liquor cabinet.

What I found, though, is that keeping score against other people in such ways left me feeling empty. Every day – every hour, even – there was another way to keep score against someone else, and I could never win all the battles or even most of them. Even worse, when I would lay my head on my pillow at night, it was just me. There was no one to keep score against, and even if I had a higher “score” in some aspect of life than others, most of the time I was left unfulfilled by that.

Over time, I began to find a lot of power in keeping my own score.

Net Worth
The primary way I “keep my own score” is by calculating my net worth quite frequently. I use my net worth as a score to judge whether or not I’m making successful, smart moves towards improving my personal finance state. I “win” if my net worth goes up. I “win big” if my net worth goes up by some specific amount each month.

Calculating your net worth is quite easy. Simply make a list of all of your debts and another list of all of your assets. Add up your assets, add up your debts, then subtract your debts from your assets. The resulting number is your net worth.

I calculate my net worth each month. I use a simple spreadsheet to do this – here’s how you can build one exactly like it.

Using Net Worth to “Keep Score”
Each month, when I calculate my net worth, I “keep score” in three different ways.

First, I compare my net worth to the previous month’s net worth. Obviously, I strive to have this go up each month, but during months where there are car repairs and other issues, it doesn’t. If I don’t see a decent increase from month to month – and having calculated this many times, I know what to expect – I’ll start digging for “why” this didn’t happen in order to improve my game.

Second, I compare my net worth to my net worth one year ago. This must be an increase – and hopefully, a sizeable one. I do this mostly to help me realize how far I’ve come over the past year, as it’s often an amazing reminder (particularly when compared to annual income) how our hard work is paying off.

Third, I look at the goals I set at the end of last month. Each month, I set goals for the coming month. Usually, these are “thirty day projects” of some kind, where I’m trying to teach myself a new normal behavior or two. One month, it might be minimizing our grocery bills to teach myself how to get the nutritious foods we need for less. Another month, I might go without spending a single dollar on entertainment. At the end of the month, I’ll reflect on how the goal went and see how it impacted my net worth – it’s usually a positive impact. Even better, I’ve usually picked up a good behavior or two by doing things this way.

Obviously, I also set goals for the next month. I usually pick a “target number” to shoot for – think of it as trying to beat one’s high score at an arcade game. I also usually define a “thirty day project” of some sort – sometimes two – to help me master a good behavior or two that will reflect well on my financial state.

During the month, if I feel like I’m on the verge of making mistakes, I’ll often calculate my net worth just as a quick reminder. It’s much like playing a game and glancing up at the score at the top of the screen – a quick reminder of how well you’re doing and a bit of a push to keep up the good work.

In a nutshell, keeping score is a key part of how I keep my personal finance in balance. It keeps me motivated and focused without causing me to “compete” in areas that are detrimental to my overall goals (like getting into “gadget wars” with friends).

Mickey writes in:

In the last week, the Dow Jones Industrial average closed at a thirteen month high and, at the same time, unemployment hit double digits for the first time since the early eighties. I thought that the Dow Jones was supposed to represent how the economy was doing, but that’s not the case. What does it mean? What is the point of reporting it if it doesn’t mean anything?

The Dow Jones Industrial Average (often called “the Dow” for short) is an incredibly common piece of news, yet the purpose of it is often really unclear to newswatchers. Is it an indication of the state of the economy? Not really. Is it an indication of the state of the stock market? Not really.

Well, then, what is it? And why does it get reported so often?

What Is the Dow?
The “Dow” usually refers to the Dow Jones Industrial Average. It was invented by Charles Dow, a co-founder of Dow Jones & Company, which is a publishing and information company.

The “Dow” is simply an average of the value of one share each of thirty of the largest companies in the United States. It does not include any of the thousands of other publicly traded companies.

Of course, a bit of math checking would reveal that if you added up the current market value of a share of each of the thirty companies in the Dow and divided by thirty, you would not get a number anywhere close to the current value of the Dow. There are several reasons for this, but the most important reason is that companies sometimes choose to split their stocks, basically exchanging two new shares for one old share (or some similar exchange). In order to make sure that such an exchange doesn’t wreck the value of the Dow (because that would effectively mean one of the thirty companies just had a single share of their stock drop by half), Dow Jones & Company accounts for it by using a scaled average, in which they effectively keep track of past splits and multiply the values of each share accordingly. Thus, even when a company splits their stock, it doesn’t affect the Dow average at all.

So, basically, the Dow is just a quick summary of the current value of shares of thirty large companies.

The Value of a Share
But what is the current value of a share?

In simplest terms, it’s all about supply and demand, just like buying and selling anything. The stock market is basically no different than a giant flea market, with many, many people buying and selling thousands of items, all trying to make a profit. Depending on the news (and the behavior of others), the price of individual items goes up and down.

In simplest terms, if there are more people buying than selling, the price of a share goes up. If there are more people selling than buying, the price of a share goes down.

What causes this shift? Information about a given company or about the economy in general. Predictions about what the future holds. The behaviors of others. All of these affect whether people are buying at the moment or selling at the moment.

The Value of the Dow
In effect, the Dow is just an average of thirty items from this giant flea market. What information can we get from that?

Generally, it’s not ruled by news from one specific company. One company’s bad news can affect it a little, but not enough to make a huge difference.

It’s also not affected too much by how things are going right now. It’s important to remember that when people buy and sell stocks, they’re doing it based on what they think the future price holds. Thus, the value of the Dow will often go down well before real economic news (like the unemployment rate) turns bad, and the value of the Dow will often go up well before real economic news turns good.

To put it simply, at the first sign the economy is slowing at all – or that one sector is seeing real problems – the Dow will begin to drop, and often rapidly. At the first sign that a recession is slowing even a bit, the Dow will begin to go up, and often rapidly (and that’s what’s happening right now).

So, look at the Dow as a predictor, nothing more, nothing less. It’s a predictor of the general direction of the economy over the next year or so. If the stock market is going up – as it is right now – the economy will generally improve from its current state over the next year.