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The DJIA is essentially useless [1]. We should look at the SP500 instead, or the Nasdaq, or... anything that's at least somewhat representative of the state of
by fchollet 11y ago
The DJIA is essentially useless [1]. We should look at the SP500 instead, or the Nasdaq, or... anything that's at least somewhat representative of the state of the US stockmarket.
[1] http://www.fool.com/investing/general/2014/04/18/why-the-dow-jones-industrial-average-is-useless.aspx http://www.fool.com/investing/general/2014/04/18/why-the-dow...
- kyledrake 11y agoHere's the Nasdaq chart, '73 to Feb 2015: http://i.imgur.com/gyyQtae.png http://i.imgur.com/gyyQtae.png
- kolbe 11y agoThis is something that people like to spew, but the DJIA has two nice properties that make it worth referencing sometimes. (1) Its correlation with the S&P 500 is insanely high. So, just using it as a proxy for the S&P is fine. (2) We've tracked the DJIA going back over a hundred years, so that data is readily available. Overall, the S&P 500 is a better index, but criticizing someone for using it in their analysis isn't worth the distraction from their actual thesis.
- Spooky23 11y agoHave you looked at the S&P 500 chart for the time period in question?
- whybroke 11y agoThe S&P 500 and Nasdaq have the same shape.