Is the Dow a good indicator of how the stock market is doing?
（It’s compromised of a small number of stocks. Does the SP 500 or other indexes do a better job of reflecting the stock market because it’s taking a larger sample of stocks>）
Answer ：
You answered your own question, kind of. The Dow 30 is comprised of Large Cap multinational names like Coke (KO).
These companies tend to do better than some of the mid cap names that appear with larger ones in the S&P 500.
When it comes to an overall picture of the economy, the S&P does a better job of reflecting the market’s performance.
Good Luck!
These companies tend to do better than some of the mid cap names that appear with larger ones in the S&P 500.
When it comes to an overall picture of the economy, the S&P does a better job of reflecting the market’s performance.
Good Luck!
Posted: July 29th, 2010 under US Stock Market.
Tags: Stock market