Is the Market Up or Down?

I’m not a big fan of price-weighted indexes like the Dow Jones Industrial Average. The S&P 500 is far better and that’s what I almost always refer to when I look at the market.

Here’s a good example of how off indexes can be. Since March 24, 2000 — the peak of the market — the Dow is up 17.8% while the S&P 500 is down 8.9%. That’s a huge spread.

Posted by on April 25th, 2012 at 3:58 pm


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