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I'm a bit hesitant to give this article any mind, simply based on the fact that they're using an antiquated index like the Dow as their point of comparison.
by kaycebasques 9y ago
I'm a bit hesitant to give this article any mind, simply based on the fact that they're using an antiquated index like the Dow as their point of comparison.
- gowld 9y agoMoving beyond the middlebrow dismissal... The only thing wrong with the Dow is the way it's weighted. Not a particularly relevant concern for the metaphor.
- kaycebasques 9y agoI don't see why it was necessary to make it personal with the "middlebrow" remark. > The only thing wrong with the Dow is the way it's weighted. You are right. Price-weighting is indeed unintuitive. Other things wrong with it: * Its name, "Dow Jones Industrial Average". It's far from an average of modern US industry. * It size. 30 companies is a small basket, when we have many alternatives that cover the economy much more comprehensively.
- rmah 9y agoOr the fact that they don't seem to be aware of the Case-Shiller index which measures the same thing, is the industry standard, and is widely reported in the financial media.