Posted on 10/11/2018 11:57:57 AM PDT by BradtotheBone
I suspect that these traders privately buy short then make the market drop. They get rich, we suffer.
Is this being organized by soros out of anger over Kavanaugh’s confirmation?
soros got rich through currency manipulation, and his riches came from other people who lost money.
Which is why one shouldn’t focus just on the DJIA. There’s the S&P 500, the NASDAQ, the Dow Transports, the Russell 2000, each of which measure different sectors of the market. And remember indexes are arbitrary measuring tools which only reflect those companies included.
Here’s an interesting history on just how the DJIA was created and why.
https://www.investopedia.com/articles/financial-theory/08/charles-dow.asp
In 1882, Charles Dow and a fellow reporter, Edward Jones, decided to start their own company, Dow, Jones & Company. Their first publication, in 1883, was called the Customers’ Afternoon Letter. It was a two-page summary of the day’s financial news, including the movement of certain stock prices, laid out in an easy-to-understand format. At a time when many reporters would accept bribes to pump up a stock in their articles, Dow established a reputation for unbiased analysis. More importantly, he wrote analysis that the majority of people could understand.
The precursors to the Dow Jones Industrial Average appeared in this small newsletter as averages of a few major stocks in the shipping and rail industry. Dow wanted to include a market average to give his readership an idea of whether the market was advancing or retreating, thus providing some clarity and an overall picture that otherwise could easily be lost by focusing on the ups and downs of a multitude of stocks. By 1896, the first DJIA was calculated using the top 12 stocks in the market. The initial calculation was a simple sum and divide that yielded 40.94 as the first published average.
I agree. Keeping it to 40 companies does not seem realistic today with all the diversity in our economy. Back in the 1920s, nobody could imagine that gigantic corporations would emerge from such things as streaming video (Netflix), fast food (Chik-Fil-A), home delivery (Amazon), and car rides (Uber), just to name a few.
The stock market is the only place I know of where everyone runs out of the building when they have a sale.
They’re crashing it a bit so they can blame it on ,you guessed it ,Trump, before the mid terms ,LOL
Oh well.
The stock market is not the economy. It’s all wrapped up with each other, but he stock market has been a mess for years.
Feds raised interest rate...........
Thanks. Sobering piece, especially the acceleration in the pace of unwinding. This could get pretty destructive. Powell needs to say/do something to calm the markets.
Given how many changes out of companies the DJIA has made (and all of their mathematical machinations accompanying those changes), there would seem to be no reason to not change the number of companies tracked.
It would be interesting to track the fraction of the stock market value represented by the DJIA vs. the total US stock market value over time.
Invest in ‘TAXES’.... sure to go higher
Bit of a lag to the last couple of days. Especially since the Fed said they were on the warpath of regular increments into the near future.
The Fed made a jump a while back that has driven me to sell appreciated stocks to pay down the loan over the last few months..
I’ve already seen a few such articles.
The S&P 500 index is a more accurate depiction of the overall market.
https://us.spindices.com/indices/equity/sp-500
The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. There is over USD 9.9 trillion indexed or benchmarked to the index, with indexed assets comprising approximately USD 3.4 trillion of this total. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.
Rate hikes are just what this senior has been waiting for. Market scares us; we want those safe CD rates. Sorry, youngins....
I'm curious how much it would cost to accomplish this manipulation.
The Russian scam didn’t work. They find themselves unable to impeach Trump. The economy is roaring. This is nothing but pulling the plug on the economy in an attempt to hurt Trump. They would throw us into a Great Depression solely to remove Trump, and teach all of us a lesson for voting for him.
I am so waiting for the 20% - 30% Bear Market that will occur someday. I’m sitting on dry powder I’ve been accumulating, and want to make my last killing.
The Communist Left knows no limit on what they will try to achieve POWER!!!!
Here’s the reduction of the argument/question:
If you don’t keep the same companies over time, why keep the number 40?
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