Tell me please?

[Bernardo de La Paz]

4. The Dow is bogus and is not the market. But the S&P 500 is in record territory.

Further, the Dow is not up over 47000 points. It up, but not by over 47000 points. It is above 47000 but up only 519 points.

The Dow is adding machine technology, a simple arithmetic addition of prices, not reflecting market capitalization which is the real issue. The Dow is highlighted by the media because the average viewer is clueless about the markets and the economy. Dow is only 30 stocks and they are price-weighted since 1894 for the convenience of adding machine operators. This is now 2025 and we have computers for such stuff.

Verizon is 40.58, Goldman Sachs is 759.54. If Goldman Sachs moves 1.00 % (7.60), then Verizon has to move 7.60 to have the same effect. That would be 18.72 %, a much bigger percentage. This despite the fact that Verizon has a market capitalization nearly as big as Goldman Sachs.

So the high priced stocks have much more effect on the Dow than the low priced stocks, as much as over 18 times the effect. Ditch the Dow.