Dow Hits 20000 for First Time
blogs.wsj.com
Dow Hits 20000 for First Time
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Re: Dow Hits 20000 for First Time
#2So what? The Dow is a terrible indicator of even how well the stock market or the economy as a whole is doing. It is price weighted instead of market cap weighted so smaller companies that released fewer shares at a higher price have more impact on the Dow than larger companies. http://www.npr.org/sections/money/2017/01/04/508261371/episo...
Re: Dow Hits 20000 for First Time
#3Here's an interesting podcast claiming the Dow is meaningless: http://www.npr.org/sections/money/2017/01/04/508261371/episo...
The article might have already discussed this, but I can't tell because of the paywall.
Re: Dow Hits 20000 for First Time
#4So what? The Dow is a terrible indicator of even how well the stock market or the economy as a whole is doing. It is price weighted instead of market cap weighted so smaller companies that released fewer shares at a higher price have more impact on the Dow than larger companies. http://www.npr.org/sections/money/2017/01/04/508261371/episo...
It's a mildly interesting psychological milestone.
Re: Dow Hits 20000 for First Time
#5So what? The Dow is a terrible indicator of even how well the stock market or the economy as a whole is doing. It is price weighted instead of market cap weighted so smaller companies that released fewer shares at a higher price have more impact on the Dow than larger companies. http://www.npr.org/sections/money/2017/01/04/508261371/episo...
It's still important for the Dow Theorists (if there are any left).
Re: Dow Hits 20000 for First Time
#6So what? The Dow is a terrible indicator of even how well the stock market or the economy as a whole is doing. It is price weighted instead of market cap weighted so smaller companies that released fewer shares at a higher price have more impact on the Dow than larger companies. http://www.npr.org/sections/money/2017/01/04/508261371/episo...
Alright how about NASDAQ and S&P 500 hit record highs at the same time.
Re: Dow Hits 20000 for First Time
#7So what? The Dow is a terrible indicator of even how well the stock market or the economy as a whole is doing. It is price weighted instead of market cap weighted so smaller companies that released fewer shares at a higher price have more impact on the Dow than larger companies. http://www.npr.org/sections/money/2017/01/04/508261371/episo...
Many also fail to consider the large number of stock buybacks when looking at the market.
Re: Dow Hits 20000 for First Time
#8So what? The Dow is a terrible indicator of even how well the stock market or the economy as a whole is doing. It is price weighted instead of market cap weighted so smaller companies that released fewer shares at a higher price have more impact on the Dow than larger companies. http://www.npr.org/sections/money/2017/01/04/508261371/episo...
The Dow is supposed to be easy enough to do by hand. Around 12 to 15 stocks, all with just the price. Its an invention of the early 1900s. Its more of a historical measurement that we keep using because... well... it works. And people are familiar with it.
But yeah, as the other posters have said: S&P500 just hit a record high. So the underlying fact is "Stock Market reaches new highs" by any sane measurement.
Re: Dow Hits 20000 for First Time
#9So what? The Dow is a terrible indicator of even how well the stock market or the economy as a whole is doing. It is price weighted instead of market cap weighted so smaller companies that released fewer shares at a higher price have more impact on the Dow than larger companies. http://www.npr.org/sections/money/2017/01/04/508261371/episo...
According to this analysis (and I must admit, I cannot speak for it's veracity)
"Significant comovements exist between the DJIA and US GDP."
https://www.diva-portal.org/smash/get/diva2:311767/FULLTEXT0...
Re: Dow Hits 20000 for First Time
#10"The Dow is dumb! Calculating a price-weighted average of a small arbitrary group of stocks is no way to go through life, son, and no one should care if that average reaches 20,000." - Matt Levine from https://www.bloomberg.com/view/articles/2017-01-11/insider-t...