Tuesday, May 01, 2007

On the DJI

The Dow Jones Industrial average is near its all-time high and the dollar is near its all-time low.

The gains in the Dow look a wee bit more modest when you consider the loss in value of the currency that we use to trade the stocks of the 30 companies that make up the Dow... Not to mention, using the performance of only 30 companies to measure the strength of the economy is nonsensical. From what I've heard, most financial professionals don't even look twice at the Dow... And neither should you. It paints a picture that is not an accurate representation of anything other than that the richest 30 companies continue to get richer while the rest of the country is stagnating at best.


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