Anonymous
Anonymous asked in Politics & GovernmentPolitics · 3 years ago

Why do idiotic Americans keep quoting the Dow Jones Industrial Average futures when all the pros only care about the S&P 500?

The DJIA and NASDAQ indices haven't been relevant for decades. Here's a little primer for you financial illiterates. The DJIA quoted is futures contract (right and obligation either to buy or sell at the contract price) on a price-weighted basket of the top 30 stocks traded on the NYSE and NASDAQ. This contract is settled in cash by the settlement date. It is used by investors of all stripes to hedge against market fluctuations or simply bet on an outperforming market. It is a derivative instrument, not a stock or a mutual fund. And news flash! The President shouldn't take credit for the reality that is price volatility - otherwise, he'll have to own it when the index trends downwards as well.

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  • 3 years ago
    Favorite Answer

    Progressives have been claiming that Dow-Jones defined the economy during ALL of Obama's 8 years.

  • 3 years ago

    Dow Jones publishes the Wall Street Journal which, needless to say, is the leading investment publication in America. Thus, the popularity of the Dow Jones Industrial Average is in some sense linked to the popularity of the Wall Street Journal.

  • Anonymous
    3 years ago

    The Nasdaq is highly relevant.

  • Jeff D
    Lv 7
    3 years ago

    S&P is a broader index, but the DJI tracks it pretty closely for all that.

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  • Anonymous
    3 years ago

    Ok but other than the burst during the late 90s dot-com bubble the NASDAQ Index historically doesn't look much different than the SP 500 and DOW, which are almost identical. Both the left and right like to say Presidents aren't responsible for the market when the other side is operating under a strong trading environment.

  • 3 years ago

    Who gives a **** about any of it?

    80% of the stocks in this country are owned by 10% of the populace.

    Gauging economic strength based on the stock market is like gauging famine in the Sudan by weighing the richest, fattest people in the country. It makes no sense.

    The simple fact is under Bush, Obama and Trump wages have remained entirely stagnant, meaning the growth in their economy, any at all, will never benefit the majority in the country.

  • 3 years ago

    i don't think there are many millionaires here

  • Anonymous
    3 years ago

    heh hehe, aren't you a complete and total fvckwit?

  • 3 years ago

    Valid point. I wonder that myself.

    Most investing dollars are tied to the S & P 500.

    although, the S & P 500 and the DOW have been known to mirror each other pretty closely so the difference shouldn't be that significant.

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