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Erik Rood

erikrood.com

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3

Why the Dow is a useless market index

The Dow Jones Industrial Average (or 'the Dow', ^DJI, DJIA), is a stock market index created back in 1896 by Charles Dow, a journalist. The goal of the index is provide a view of the stock market's health. The Dow is an index of just 30 (arbitrarily chosen) stocks, weighted by the stock prices of its component…