Actually, I think the biggest problem with looking at index numbers is that they do not reflect total return.
The DOW isn't an index.
Correct. I was thinking it is a price based average, not a market weighted index like the S&P 500. But it is an index.last time I looked it was the price-weighted average of 30 securities chosen by dow jones and co - pretty sure that makes it an index
1% difference. Just doesn't seem right. Think the Dow needs an adjustment.
The DOW (really the DOW Industrial Average, there are the transportation and utility averages too) is outdated - it was easy to calculate back when it was created back in the 1800's. The S&P 500 or (better) total US market are more indicative of "the market".
I blame the Wall Street Journal for continuing to keep this outmoded indicator alive.
The DOW isn't an index. It's useless for anything other than answering "what's happening with the DOW?"
+1 First laugh of the day.
Just curious: How do you know what "the market" is? What measurement/index is in lockstep?It seems as though there was a time when the DOW and S & P were more in lockstep with the "market"
The DOW isn't an index. It's useless for anything other than answering "what's happening with the DOW?"
Thanks for the link. You might want to read it:...
And I do believe "indexes" is the accepted plural. Well, it's complicated:
https://www.grammar.com/indices_vs._indexes ...
-ERD50
IMO, the DOW is the Paris Hilton of "indexes", it's famous for being famous.
-ERD50
Actually, I think the biggest problem with looking at index numbers is that they do not reflect total return. This can be a hugely distorting factor when comparing the total return of, for example, a fund to the change in an index value over the same period. I sometimes have trouble finding index total return numbers.
Sure. But then I have to find total return for SPY. The problem is unchanged.If you track for example SPX, you will get total return for the S&P 500.
The Dow has been worthless since electronic computers have been commonly available.
Your statement begs the question: How are the Dogs of the Dow doing these days? I remember reading that buying the Dogs was usually a good move and profitable over the next year or so.