happythoughts 0 #1 January 4, 2007 Does the Dow-Jones stock average really matter? It is the value of certain stocks. That value is not necessarily related to the health of the LOCAL economy. I read somewhere that 94% of the textile industry has left the US. The stock of these companies does well, but the economy of the regions is in ruin. Chrysler is importing sub-compact cars from China. If they totally outsourced all car building to China, their stock price would rise. How many stereo systems or TVs are built in the US ? What is the stock price of Nike? Quote Share this post Link to post Share on other sites
nathaniel 0 #2 January 4, 2007 It has a strong predictive quality for the US economy, something like 3-6 months worth of prediction iirc. But it fluctuates a lot, there's a lot of noise in the reading so it's pointless to get worked up about day-to-day changes.My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me, Lebowski? Quote Share this post Link to post Share on other sites
Gawain 0 #3 January 4, 2007 QuoteDoes the Dow-Jones stock average really matter? Yes. QuoteIt is the value of certain stocks. That value is not necessarily related to the health of the LOCAL economy. Yes and no. Large companies have operations dispersed all over the country and that does have a direct affect on the local economy. QuoteI read somewhere that 94% of the textile industry has left the US. The stock of these companies does well, but the economy of the regions is in ruin. As most textile businesses were located in the Southeast US, I suggest you look around these areas. The local economies in many "former" depressed areas have been able to adapt. Of course this isn't universal, but the plain fact is, any of these communities that saw it coming were able to prepare to a certain extent. QuoteChrysler is importing sub-compact cars from China. If they totally outsourced all car building to China, their stock price would rise. Which cars are these, and where are they selling them? QuoteHow many stereo systems or TVs are built in the US? Don't know, but Olevia builds all their HDTVs in Southern California. More of an exception than the rule, but that's been the case since we saw all the electronics getting made in Japan. Either way, the chip-sets that matter are made here. QuoteWhat is the stock price of Nike? At the close of business today, $98.67, up $1.00 (1.02%).So I try and I scream and I beg and I sigh Just to prove I'm alive, and it's alright 'Cause tonight there's a way I'll make light of my treacherous life Make light! Quote Share this post Link to post Share on other sites
Casurf1978 0 #4 January 4, 2007 I work in finance and we rarely if ever look at the Dow. It's only thirty securities and does not really indicate anything. The only reason it is well know is the marketing from Dow Jones. If you want an overall look at the health of an economy or the market look at a much broader index, e.g., Dow Jones Wilshire 5000. The only companies excluded frm this index are pink sheets. Also take a look at the MSCI indices. Quote Share this post Link to post Share on other sites
ryoder 1,571 #5 January 4, 2007 QuoteDoes the Dow-Jones stock average really matter? It is the value of certain stocks. That value is not necessarily related to the health of the LOCAL economy. I read somewhere that 94% of the textile industry has left the US. The stock of these companies does well, but the economy of the regions is in ruin. Chrysler is importing sub-compact cars from China. If they totally outsourced all car building to China, their stock price would rise. How many stereo systems or TVs are built in the US ? What is the stock price of Nike? The DJIA is an antique relic. As well as representing only 30 stocks, it ignores the differing market caps. The S&P500 or Wilshire 5000 are much more relevant. http://www.streetauthority.com/terms/index/dowjones.asp"There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones. Quote Share this post Link to post Share on other sites
NCclimber 0 #6 January 5, 2007 QuoteDoes the Dow-Jones stock average really matter? It is the value of certain stocks. That value is not necessarily related to the health of the LOCAL economy. That's because it's a national indicator. QuoteI read somewhere that 94% of the textile industry has left the US. The stock of these companies does well, but the economy of the regions is in ruin. What percentage of the Dow is made up of overseas textiles? QuoteChrysler is importing sub-compact cars from China. Really? How many cars did Chrysler import from China in 2006? There are a number of good reasons to discount the importance of the DJIA. However, you didn't really address any of them. Quote Share this post Link to post Share on other sites
nanook 1 #7 January 5, 2007 QuoteChrysler is importing sub-compact cars from China. If they totally outsourced all car building to China, their stock price would rise Was chrysler bought by an american company again? They and Dodge were bought out by Daimler. . .or merged in Germany._____________________________ "The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln Quote Share this post Link to post Share on other sites
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