This morning the Dow Jones Industrial Average reached 16,000. Based on this number many news sites proclaimed that the stock market is at a new record high. These stories are both right and wrong. They are right because the Dow has never been at this particular number. They are wrong because the Dow does not take into account inflation. Adjusting for inflation (shown in the graph below) reveals that the Dow is still a small bit below the level it reached in 1999 and it is too soon to break out the celebratory champagne.