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This may make sense in theory but in reality is wrong. The DJIA has historically had a very close correlation to the S&P. Plus there is an inescapable psycholog
by dkrich 2y ago
This may make sense in theory but in reality is wrong. The DJIA has historically had a very close correlation to the S&P. Plus there is an inescapable psychological aspect to the Dow that is unique. When the Dow is off 1500 points it hits much differently than the S&P falling 200 points.
- dubcanada 2y agoI have a feeling that is because every company in the DJIA is also in S&P, and most are very heavily weighted in S&P. Rather then companies within the DJIA doing as good as companies in the S&P.
- ywvcbk 2y ago> inescapable psychological aspect to the Dow that is unique. Sounds about the same as: > that is reported on because people talk about it because it's reported on. The unique aspect is that a randomly weighted index is just outright stupid however you look at it.