Poll:Which major index means more to you?

[David1961]

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.

 

[pb4uski]

S&P 500 is more representative of my diversified equities positions.

 

[M Paquette]

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?

 

[W2R]

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.

 

[jclarksnakes]

S&P for the reasons already stated.

 

[Animorph]

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.

 

[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.

 

[Live And Learn]

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.

+1

 

[sengsational]

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.

I'm surprised they match so well! There's just the 'day trader hump', otherwise it's fairly lock-step on a macro view.

 

[Running_Man]

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.

 

[seraphim]

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.

 

[polaris007us]

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

 

[Tyro]

S&P for the reasons already stated.

+1, but I have all 3 in a widget on my desktop.

Tyro

 

[obgyn65]

None of the major index numbers means anything to me as I don't follow them.

 

[Major Tom]

None of the major index numbers means anything to me as I don't follow them.

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.

 

[karluk]

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.

 

[Midpack]

I was aware of the statistics that the DJIA and S&P500 have closely tracked each other over the years.

So does the NASDAQ, it's just more volatile/higher beta...

 

[Lsbcal]

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.

 

[mpeirce]

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.

 

[jollystomper]

Saying the DOW is up 100 points while the SP500 is up 100 points doesn't mean what people thinks it means.

+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.

 

[Lsbcal]

+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.

It does make one wonder how this nation has done so well.

When it comes to money matters, people seem to be dumb and dumber.

Not us though.

 

[mickeyd]

When I tune in to the various business networks, I only look at the S&P 500 that scrolls across the screen. Even tho none of my equity funds follow that index, it's all pretty relative as I am not going to buy/sell depending on what crops up.