California
Dow Jones stock index crosses 40,000: Good or bad for California?
The stock market’s venerable yardstick, the Dow Jones Industrial Average, just made history – crossing 40,000 for the first time.
Yes, this milestone set Thursday, May 16, is only a brief emotional victory for shareholders. Yet it can be seen as a historical milepost for the broader business climate, especially in California.
To honor the moment, the trusty spreadsheet reviewed the Dow’s 5,000-point markers and how California fared in those periods using an economic metric (California unemployment), an interest rate (the average 30-year fixed mortgage), and home prices from the California Association of Realtors.
As we begin our data-filled voyage, let’s note the Dow first crossed 5,000 in November 1995 — back when you could buy the median-priced California single-family home for $176,000.
5,000-point mileposts
Dow passes 10,000 in December 1999: It took the stock index just over four years to double from 5,000 compared with a 28% gain for California homes to $225,000 in the same timeframe. This was an era when the economy broke loose from its early 1990s slumber. California unemployment dipped between 1995 and 1999 to 5% from 7.9% while mortgage rates rose to 7.9% from 7.4%.
15,000 in May 2013: The Dow needed more than 13 years to gain 50% to hit this benchmark vs. an 85% surge for homes statewide to $417,000 in the same period. This extended gap came during the financial rollercoaster ride from the bubble period in the early 2000s bursting into a Great Recession and then the economy’s slow recovery. So, California unemployment was 9.2%, up from 5% at the beginning of this crazy period. Yet, cheap money was one salve: 3.5% mortgages vs. 7.9% in 1999.
20,000 in January 2017: The Dow took under four years to gain 33% to gain the next 5,000 while homes statewide gained 18% to $492,000 as the post-crash rebound continued. California unemployment fell to 5.2% from 9.2% as mortgage rates ticked up to 4.2% from 3.5% in 2013.
25,000 in January 2018: The Dow needed just one year to gain 25% for its next benchmark vs. a 7% gain for California homes to $528,000 as the recovery hit full stride. California unemployment dipped to 4.4% from 5.2% while mortgage rates slipped to 4% from 4.2% in 2017.
30,000 in November 2020: The index took just under three years to gain 20% vs. 32% for California homes to $699,000 in the middle of the pandemic’s business wild gyrations. California unemployment surged to 9% from 4.4% – but investors cheered historically cheap money such as mortgages hitting 2.8%, falling from 4% in 2018.
35,000 in July 2021: It took the Dow less than a year to gain 17% vs. 16% appreciation for California homes to $811,000 as the pandemic’s economic surge was in full force. Statewide unemployment fell to 7.4% from 9% and mortgages remained cheap – 2.9% vs. 2.8% in 2020.
40,000 in May 2024: The Dow took almost three years to gain 14% vs. an 11% gain for California homes to a record $904,000 in April. The economy struggles to find its new normal as statewide unemployment fell to 5.3% in April from 7.4%. But mortgages got expensive as the Federal Reserve fought and overheated economy – 7% in April from 2.9% in 2021.
Bottom line
So, the Dow is up eight-fold since crossing 5,000 just over 28 years ago. California homes are only five times more expensive.
That’s not the point, though. This stroll down memory lane reminds us that the markets typically need a solid economy for stocks or homes to appreciate. Cheap money is the icing on the cake.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
California
GOP California governor candidates to face off at Clovis forum ahead of primary
With California’s June 2nd primary election nearing, Republican candidates for governor, Steve Hilton and Sheriff Chad Bianco, are set to appear at a forum in Clovis.
The Fresno County & City Republican Women Federated is hosting its “Celebrating 250 Years of America Dinner” and a gubernatorial forum on Friday, May 22nd, at The Regency Event Center, 1600 Willow Ave., in Clovis.
The forum will be moderated by State Senator Shannon Grove.
The discussion is expected to focus on major issues facing Californians, with questions presented via video by a panel of state and local figures, including Fresno County District Attorney Lisa Smittcamp on public safety and crime; former Fresno County Sheriff Margaret Mims on border control and citizenship; William Bourdeau of Bourdeau Farms LLC on water rights and agricultural issues; California state Assemblymember David Tangipa on taxation and fiscal responsibility; Jonathan Keller of the California Family Council on parental rights and education; and Matthew Dildine, CEO of Fresno Mission, on homelessness and mental health.
Clovis Mayor Pro Tem Diane Pearce and Fresno County Supervisor Nathan Magsig are listed as masters of ceremonies.
Doors are scheduled to open at 4:30 p.m., followed by a social hour at 5 p.m. Dinner and the program are set for 6 p.m.
Attire is listed as cocktail or business formal. Organizers said a portion of the proceeds will benefit the Veterans Home of California – Fresno.
GOP California governor candidates to face off at Clovis forum ahead of primary (Courtesy: Fresno County & City Republican Women Federated)
[RELATED] Top-two primary could pit same-party rivals as crowded Democratic field fractures votes
“This forum comes at a pivotal moment for our state,” FCCRWF event organizers said. “Bringing the top Republican gubernatorial candidates to Clovis allows Valley families, farmers, and business owners to get real answers on the issues that affect their daily lives, from water infrastructure to public safety and the skyrocketing cost of living.”
Individual tickets are $150, with discounts offered to FCCRWF members.
Table sponsorships are available at the $1,500, $2,500 and $5,000 levels.
Tickets and sponsorships are available online at FresnoRepublicanWomen.org.
California
Amazon halts high-speed e-bike sales in California following fatal crashes
Orange County’s top prosecutor said Amazon has agreed to stop California sales of certain e-bikes that can go faster than state speed limits following a series of fatal collisions.
The announcement, first reported by KCRA, comes on the heels of an April consumer alert by California Attorney General Rob Bonta that highlighted a rise in deaths related to e-bike and motorcycle crashes.
“We are seeing a surge of safety incidents on our sidewalks, parks, and streets,” Bonta said in a statement. “To ride a motorcycle or moped, you need to have the appropriate driver’s license and comply with rules of the road.”
Bonta’s alert stated that pedal-assisted e-bikes cannot exceed 28 mph. Throttle-assisted e-bikes are limited to 20 mph.
Amazon had continued to sell e-bikes with speeds over 40 mph. Amazon did not immediately respond to a request for comment.
Electric bikes and motorcycles have become increasingly popular in the last few years, particularly among teens. But the surge has been shadowed by a spate of deadly crashes.
Orange County Dist. Atty. Todd Spitzer has charged at least three parents with allowing their children to ride electric motorcycles illegally, calling the vehicles a “loaded weapon.”
Spitzer noted in a post on X that Amazon said it removed e-bikes advertised with speeds over 40 miles per hour after KCRA contacted the company.
“The company said it has removed the examples provided and is investigating compliance for similar products,” Spitzer wrote.
That includes an Orange County mother, who faces an involuntary manslaughter charge after her son allegedly struck an 81-year-old man with an electric motorcycle. The 14-year-old boy had been doing wheelies on an e-motorcycle
A 13-year-old boy on an e-bike in Garden Grove died earlier this week after veering into the center median and hurtling onto the roadway. The boy was traveling at around 35 mph on a black E Ride Pro electric motorcycle, authorities said.
Amazon’s new sales limits come as the Los Angeles City Council pushes to keep electric bikes of off most city recreational trails, arguing they are a threat to hikers. E-bikes would still be allowed on designated bikeways, such as along the L.A. River.
California
After exile, California tribes could help run their ancestral redwoods again
Daniel Felix, 10, looks out from atop a gargantuan stump of an old-growth redwood on his tribe’s ancestral land. Once, this forest on California’s North Coast was replete with the ancient behemoths that can live beyond 2,000 years.
Only a fraction are left now, depleted by a logging company before the state acquired the forest in the 1940s.
This is unique public land, Jackson Demonstration State Forest, spanning 50,000 acres. Trees are plentiful here, but they might not live a millennium. California’s 14 demonstration forests are required to produce and sell timber to show — or “demonstrate” — sustainable practices. Money from logging — roughly $8.5 million a year — pays for management of the forests by the California Department of Forestry and Fire Protection, or Cal Fire.
Daniel’s tribe, the Coyote Valley Band of Pomo Indians, has pushed to rein in the cutting — spearheaded by his late great-grandmother, Priscilla Hunter. They’re part of a diverse coalition that includes environmental activists, local politicians and other tribes.
Now they may finally get their wish. Assemblymember Chris Rogers (D-Santa Rosa) has introduced a bill that would nix the forests’ logging mandate, instead prioritizing values such as carbon storage, wildfire resilience and biodiversity.
The bill represents the latest chapter in a region legendary for fierce battles over logging, and it marks an uncommon alliance between tribes and the environmental movement.
Under Assembly Bill 2494, there could still be logging, but it would have to support those new principles, and the forests would be funded differently.
And it proposes another significant change. It would pave the way for giving tribes a say in managing the lands for the first time since they were forcibly evicted more than a century ago, and for integrating Indigenous knowledge — like cultural burning — into the forests.
“It’s what we dreamed of,” said Polly Girvin, Hunter’s former partner and a retired lawyer focused on Native American issues. “And to have it come true? I’m used to movements that sometimes take 30 years in Indian Country to get to the justice you’re seeking.”
Kids play in the stump of an ancient redwood during a potluck held after the spirit run in Jackson Demonstration State Forest last month.
(Paul Kuroda / For The Times)
Some backers say the bill offers a new economic path forward for communities behind the so-called redwood curtain. With the decline of logging and cannabis, they see tourism driven by ultramarathons, mushroom foraging and other outdoor activities as a financial savior.
“If we had an increase of 10% of visitors coming to our county because of recreational opportunities, that would more than surpass all of the timber tax in our county,” Mendocino County Supervisor Ted Williams said, projecting an increase in money from a lodging tax.
But the push to reshape forest management is fiercely opposed by loggers and mill owners, who say their work is sustainable and provides blue-collar jobs in a region where they’ve dwindled. Already California imports most of its wood from Oregon, Washington and Canada.
“California has the most rules and regulations of anywhere in the world so all they’re doing is exporting the environmental impact to somewhere else, still using the product,” said Myles Anderson, owner of a logging company in Fort Bragg founded by his grandfather. “It’s pretty disgusting, really.”
Anderson believes the bill will greatly reduce logging, even stop it altogether. In his office, with photos of him and his father at a logging site decades ago, he points out it’s sponsored by the Environmental Protection Information Center. Why else would they and other environmental groups “support it if they didn’t see the same thing that I’m seeing?”
Last month, activists who have sought to rein in logging at Jackson held their first major gathering in about four years, galvanized by the bill that they see as a significant step in the right direction.
(Paul Kuroda / For The Times)
A new but old fight
About five years ago, community members caught wind of plans to chop down towering redwoods within Jackson, near the coastal town of Caspar. Priscilla Hunter would come out to the forest “and could hear them crying — it was our ancestors,” said her daughter Melinda Hunter, the tribe’s vice chairwoman. “Then she had to protect [the trees].”
Environmental activists and Native Americans, not historically allies in the region, joined forces to fight it. “Forest defenders” camped out high in the canopy and blocked logging equipment with their bodies. Some were arrested.
The uprising harked back to the 1980s and 1990s, when iconic environmentalist Judi Bari led Earth First! campaigns against logging in the region. Many of the old tree sitters — white-haired and brimming with stories of Bari — have come out of the woodwork for the latest battle.
For them, it was a win. Cal Fire paused new timber sales and, citing public safety, halted some that were underway — including one expected to generate millions of dollars for Myles Anderson’s logging company.
“We were left with nothing,” Anderson said.
Then, last year, Cal Fire approved the first harvest plan since that hiatus. It riled up the sizable, ecologically minded community.
Jessica Curl, 47, remembers growing up nearby “in a terrain of trunks” as trucks carried out logs. Now the redwoods are regrowing, “gorgeous” and gobbling carbon, she said.
“We’re so lucky to live in an area where we have this amazing climate-change mitigation tool, that if we would just leave it alone would do this amazing work that we’re trying to think of all these cool, inventive things to do.”
Isidro Chavez receives burning sage, or smudging, after a run in Jackson Demonstration State Forest. Smudging is a ritual used to cleanse spaces and individuals of negative energy, promote calm and improve mood.
(Paul Kuroda / For The Times)
Tears of grief, resolve
A group of “spirit runners” — a Native American tradition of bringing prayer — sprinted through the heart of Jackson forest as rain poured through the canopy. The mid-April event marked activists’ first major gathering since protests wound down in 2022.
Attendees gathered in a circle to wait for them. Misty Cook, of the Sherwood Valley Band of Pomo Indians, read a statement as eyes misted all around:
“All the living things around us, they miss us. They miss the language. They miss our touch, our hands, touching all of the things — the water, the plants. They miss the songs. They miss the beat of our footsteps and our voices, and they miss the children’s laughter and play, which was so important. They want us to gather them, to use them and to share them. Otherwise they will get sick and possibly die.”
Cal Fire launched a tribal advisory council to bring Indigenous perspective into Jackson. But some local tribes say it’s not enough because they lack decision-making power.
When the runners arrived, the circle absorbed them. Then they continued on to the site of a controversial proposed harvest, Camp Eight. They wrapped a bandana that belonged to Priscilla Hunter around a small tree — a quiet, somber act where she took her last stand. Runners took turns embracing the trunk.
Redwoods at the Capitol
In March, Rogers’ bill cleared a committee and is now in the Assembly Appropriations Committee’s suspense file. A hearing is set for Thursday.
Funding is a major point of contention. Environmentalists say funding these forests with timber operations incentivizes cutting bigger trees. Cal Fire maintains decisions are driven by forest health, not industry demand.
AB 2494 would fund the forests through a tax on lumber and engineered wood products. The shift could create “[o]ngoing state costs and cost pressures of an unknown but potentially significant amount, possibly in the low millions of dollars annually,” according to a legislative analysis.
The California Forestry Assn., a timber industry trade group, says the idea is a nonstarter.
Cal Fire declined to comment on pending legislation but Kevin Conway, the agency’s staff chief for resource protection and improvement, said its nearly 80-year history managing Jackson reflects “care and attention.” Since the state acquired the forest, “we have more trees on the landscape, more habitat and those trees are trending larger,” he said.
For the tribes who have rallied and prayed, a burning question is whether the land will again reflect their vision, or remain shaped by decisions made by others.
Buffie Campbell, executive director of the InterTribal Sinkyone Wilderness Council — co-founded by Priscilla Hunter and one of the groups supporting the bill — said young people wouldn’t be able to fathom the significance of the legislation passing. Maybe that’s a good thing.
“Maybe they don’t need to know about all the fighting that we have to do before they get to go out and enjoy and be tribal guardians stewarding their land.”
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