Emmanuel nice
Banned
Many average investors are confused about the exact meaning and impact of the Dow. Investors that invest in index mutual funds or exchange traded funds, which follow the behavior of the Dow will be extremely satisfied to hear when the Dow has hit a high record. However, for the rest it will not be of such a joy.
Many financial expert attach to the meaning. For instance, if an investor has sustained losses due to the downturn of the market, the low values of the Dow will mean that it is time to get back in the game. However, this may not be an omen of a future upturn, since by its nature the market may surprise them and continue to fall.
The Dow's movements in the market have a little meaning in terms of dollars and cents. However, it is an omen of confidence for those institutional investors who have parked their money in large cap, blue chip stocks that constitute the Dow. Additionally, a favorable performance of the Dow also has a good meaning to individual investors.
Many financial expert attach to the meaning. For instance, if an investor has sustained losses due to the downturn of the market, the low values of the Dow will mean that it is time to get back in the game. However, this may not be an omen of a future upturn, since by its nature the market may surprise them and continue to fall.
The Dow's movements in the market have a little meaning in terms of dollars and cents. However, it is an omen of confidence for those institutional investors who have parked their money in large cap, blue chip stocks that constitute the Dow. Additionally, a favorable performance of the Dow also has a good meaning to individual investors.