ACTV - How 'The Market' Is Really Doing

2024-06-12 11:45:00 ET

Summary

• All markets – stocks, bonds, currencies, commodities – provide us with valuable information about the economy.
• The broader the index, the more representative it is of the economy as a whole.
• The way indexes are constructed makes a big difference in the information you can extract about the economy.

When people talk about “the market” they are usually referring the big indexes – the S&P 500 ( SPX ) or the Nasdaq. For those who aren’t really watching, “the market” is the Dow, which is a lousy index for a lot of reasons but has the advantage of history. But are those really representative of how “the market” is doing?...

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