Categories

Stocks

Tools

  • Economy & Politics
  • Investing
  • Personal Finance
  • Related Posts


    Variety Is Key In Mondelez Coffee Growth Strategy
    Microsoft Boosts Dividend 11 Percent, Adds New Directors
    Adobe Revenue Forecast Misses, Shares Slip
    Dow Stocks With The Most Upside Left
    Sony Forecasts $2B Loss, Cancels Dividends
    EMC Revenue At Risk In $10 Billion Document Security Market
    Is This IPO The Next Tesla?
    4 Oil Stocks To Buy To Play The Permian Basin Oil Boom
    Microsoft: The Comeback Has Only Just Begun
    2 Of The Best Biotech Stocks To Buy Now
    Secret Reason Amazon Should Fear Alibaba
    Alibaba IPO Demand May Be Sinking Tech Stocks
    What Bull? 47 Percent Of Nasdaq Stocks In Bear Market, Down 24 Percent On Average
    Alibaba Worried About Facebook IPO As Considered Nasdaq Versus NYSE
    Buying Stocks Based On How Other People Feel


    The Dow Jones Industrial Average Is A Big Lie

    The Dow Jones Industrial Average is the most inaccurate and distorted of all stock indices – and yet it remains the most followed stock market index.

    Many of the Dow’s flaws are well-known, but that hasn’t stopped people who should know better from following its every move.

    There are plenty of reasons why the retail investor needs to take the Dow Jones Industrial Average with a grain of salt.

    Even the most basic aspects of the DJIA are flawed. When Charles Dow created the index in 1896, it consisted of 12 companies. In 1916 the number was increased to 20, and in 1928 increased again to 30, where it has remained.

    In both of those cases, and more than 50 times in the history of the Dow Jones Industrial Average, the component companies were changed. Such changes led to the creation of a clunky method to keep the index price consistent, the “Dow Divisor.”

    Click to read the full story

    Discuss this Story:

    Comment Policy: We encourage open discussion. Comments including racist statements, profanity, name calling or spam will be removed at our discretion. We use filters for spam protection. If your comment does not appear it is likely because it violates the policy.

    Cop’s Teenage Son In Coma After Run-In With The Law
    Gold Demand In India Triples As China Launches Global Gold Bourse Tomorrow
    Can The Petrodollar Survive Low Interest Rates?
    How Banks Continue FX Rigging Right Under The SEC’s Noses
    Futures Little Changed As Fed Statement Awaited
    Ultrasonic Says Top Executives And Cash Missing
    China Central Bank Injects $81 Billion Into Major Banks To Support Economy: Reports
    Fed Watch: Let The Word Games Begin
    Is Alibaba Coming To America?
    Sanctions Hit Russian Economy As Ruble Skids
    3 Companies Get California Self-Driving Car Permits
    Why You Should Avoid Most New Mutual Funds
    China Stocks Tumble Most In Six Months; US Futures Lower As Key Risk Events Loom
    Why Worry? The Two Scariest Charts In The World
    The Consequences Of Fracking: Two Clashing Views
    Why Most People Aren’t Downloading Apps Anymore
    Londoners Can Now Pay For Commutes By Waving Their Credit Cards—No Apple Pay Required
    The Truth Behind The Dangerous “Helicopter Money” Delusion
    Silver Futures Will Soon Pull Prices Out Of Recent Slump
    ADRs Dominate Early Trading On Wall Street
    Calpers Dumps Hedge Funds Citing Cost, To Pull $4 Billion Stake
    U.S. Safety Chief Raps GM’s ‘Flawed’ Culture On Recalls
    ECB’s Predicament Leaves Peers Mute On Currency Depreciation
    Boeing-Lockheed Venture Said Teaming With Bezos On Rocket Engine
    As U.S. Farm Cycle Turns, Tractor Makers May Suffer Longer Than Farmers
    Russian Ruble Hits Historic Low Amid Sanctions
    States With The Rudest Drivers
    Wind Farms Kill Fewer Birds Than Towers, Cats
    Buick Winning Sales By Poking A Little Fun In Ads
    Study: Faulty Gas Wells, Not Fracking, Pollute
    Read more from Investing...

    Liberty Investor Digest

    Get today's most important
    financial headlines all in
    one place by email!



    Sources


    close[X]

    Sign Up For Liberty Investor Digest™!

    Get Liberty Investor Digest FREE By Email!

    Input your name and email address in the fields below and get today's most important financial headlines sent straight to you inbox!

    Privacy PolicyYou can opt-out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.