View Poll Results: Market index
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Dow
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12 |
13.79% |
S&P 500
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72 |
82.76% |
Nasdaq
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3 |
3.45% |
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Poll:Which major index means more to you?
06-12-2013, 03:12 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 1,085
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Poll:Which major index means more to you?
If one of the three major stock market indexes is more meaningful to you, which one is it? The S&P 500 means a little more to me, mostly because it includes more companies than the Dow.
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06-12-2013, 03:27 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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S&P 500 is more representative of my diversified equities positions.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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06-12-2013, 03:32 PM
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#3
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Moderator Emeritus
Join Date: Oct 2007
Location: Portland
Posts: 4,946
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S&P 500. It's roughly 4/5 of the total US market by capitalization, and it's simply capital weighted.
The Dow Industrials is the sum of the prices of one share of each of the companies currently in the index, times a 'multiplier' that adjusts for changes in the exact companies that make up the index. It is loosely coupled at best to the broad stock market.
The NASDAQ Index is a motley selection of non-financial companies heavily weighted towards 'tech' whatever that is, with a bunch of arbitrary multipliers cut in and out as companies change size, so as to meet the whims of fund managers. Yeah. That. Anyone remember NASDAQ 5000?
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06-12-2013, 03:42 PM
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#4
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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The Dow, because even though it has changed and even though the S&P may represent a more diverse selection, I have been following the Dow for nearly sixty years.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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06-12-2013, 03:56 PM
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#5
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Full time employment: Posting here.
Join Date: Jun 2006
Posts: 927
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S&P for the reasons already stated.
__________________
CW4, USA-(ret)
RN, BSN-(ret)
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06-12-2013, 04:03 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
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I watch the S&P 500 because it's available. But I'm about 50% international, so it's not terribly meaningful for me. Especially the last few weeks. My mom wants to hear points on the Dow instead of my percent of S&P 500, but her portfolio looks more like the S&P 500.
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06-12-2013, 04:05 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,204
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I know the Dow (number history) best, and it's always reported, so it's the one I intuitively know magnitude and direction by numbers alone. But it doesn't really matter much IMO - they move together more often than not.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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06-12-2013, 05:09 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Feb 2012
Location: Tampa Bay Area
Posts: 1,866
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Quote:
Originally Posted by Midpack
I know the Dow (number history) best, and it's always reported, so it's the one I intuitively know magnitude and direction by numbers alone. But it doesn't really matter much IMO - they move together more often than not.
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+1
__________________
"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11
ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
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06-12-2013, 05:23 PM
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#9
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Moderator
Join Date: Oct 2010
Posts: 10,656
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Quote:
Originally Posted by Midpack
I know the Dow (number history) best, and it's always reported, so it's the one I intuitively know magnitude and direction by numbers alone. But it doesn't really matter much IMO - they move together more often than not.
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I'm surprised they match so well! There's just the 'day trader hump', otherwise it's fairly lock-step on a macro view.
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06-12-2013, 06:20 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 2,842
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The S&P 500 had to it's credit the Bogle Bump from 1995 to 2000 but the long history of the Dow Jones Industrial Average and the beauty of it's construction and stock selection would be the average that would be most upsetting to me if it were to go away. I think it would take a week to pick another index such as the Russell 1000 to replace the S&P500 as the S&P500 is really only useful to me as a mathematical comparison point.
__________________
But then what do I really know?
https://www.early-retirement.org/forums/f44/why-i-believe-we-are-about-to-embark-on-a-historic-bull-market-run-101268.html
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06-12-2013, 06:31 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 1,555
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None of the above. Morningstar US market. Runs proportional to my portfolio, and I can get a very close estimate of my portfolio's performance during the day by glancing at it.
__________________
"Growing old is no excuse for growing up."
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06-12-2013, 07:28 PM
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#12
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Confused about dryer sheets
Join Date: Jun 2013
Posts: 3
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I personally follow S&P Mid Cap 400 index and have 20% portfolio invested in this index mutual fund last 15 year. Very happy with the returns, understand the higher risk but the returns are nice too...looking to gradually move out next 5-10 years before FIREed
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06-12-2013, 11:01 PM
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#13
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Full time employment: Posting here.
Join Date: Aug 2012
Location: Upstate
Posts: 699
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Quote:
Originally Posted by jclarksnakes
S&P for the reasons already stated.
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+1, but I have all 3 in a widget on my desktop.
Tyro
__________________
Yeah well, that's just, ya know, like, your opinion, man. ~ The Dude
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06-12-2013, 11:44 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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None of the major index numbers means anything to me as I don't follow them.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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06-12-2013, 11:58 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,324
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Quote:
Originally Posted by obgyn65
None of the major index numbers means anything to me as I don't follow them.
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That's hardly a surprise obgyn
My domestic stock index fund closely tracks the S&P 500, so that's the index I pay more attention to.
__________________
Contentedly ER, with 3 furry friends (now, sadly, 1).
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On a mission to become the world's second most boring man.
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06-13-2013, 07:00 AM
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#16
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Full time employment: Posting here.
Join Date: Jan 2013
Posts: 681
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I was aware of the statistics that the DJIA and S&P500 have closely tracked each other over the years. But since I have a significant chunk of my stock holdings in Vanguard's S&P500 index fund, I had to vote for the S&P. It's the only index in the poll which directly relates to whether my investments gain or lose from day to day.
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06-13-2013, 07:29 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,204
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Quote:
Originally Posted by karluk
I was aware of the statistics that the DJIA and S&P500 have closely tracked each other over the years.
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So does the NASDAQ, it's just more volatile/higher beta...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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06-13-2013, 08:14 AM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2006
Location: west coast, hi there!
Posts: 8,808
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When I think of "the market" it is the SP500 on a daily % change basis -- as in the SP500 was up 1.1% today. Then I compare that to other holdings. Absolute values of the index are not on the radar screen.
But the real absolute value I follow is our portfolio value.
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06-13-2013, 12:58 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Feb 2012
Location: Northern Ohio
Posts: 3,182
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SP500 - who cares about the DOW?
And my little pet peeve is that they report it in points! Only people who really follow markets have any idea what the points mean. They should really report it in percentages.
Saying the DOW is up 100 points while the SP500 is up 100 points doesn't mean what people thinks it means.
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06-13-2013, 02:25 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,135
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Quote:
Originally Posted by mpeirce
Saying the DOW is up 100 points while the SP500 is up 100 points doesn't mean what people thinks it means.
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+1
On more than one occasion (and one is too many) I've had to explain to someone that the Dow is not "better" because it gains more points.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
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