Wednesday, August 27, 2008

If I'm here and you're here, doesn't that make it OUR time?

Anybody know what the Dow did yesterday? Just about every news cast shares that bit of information, the Dow Jones Industrial Average.

I contend that factoid is a waste of my time. It's also a waste of OUR time, because I will try to convince you that it's a waste of your time.

The DJIA consists of 30 of the largest and most widely held public companies in the United States. If the Dow is up, the average price of those stocks is up. If it is down, the average price is down.

You know how many companies there are being traded? I asked Deion and he said, "Thousands, consequently millions."

For the common (wo)man who owns no stocks, this stat might suggest a trend, but only if monitoring these figures for an extended period of time. But who does that? Plus, how effective is that limited sample size statistically?

For you peeps who own stock, wouldn't you benefit more from knowing how your stocks did? The Dow could tank, but your stock in Pancho's could continue to rise. Even if you had stock in one of those 30 DJIA companies, yours could be up, while the other 29 are down, or vice versa.

For brokers and other stock junkies, isn't there something more helpful in giving you information about the market as a whole or your portfolio, etc.? (Rhetorical question)

Am I missing something or isn't the reporting of the Dow Jones Industrial Average a colossal waste of our time?



At 27 August, 2008 17:19, Blogger Rev. said...

Does the Dow Jones Industrial Average have anything to report about truancy? I think we should just study about Cuba and have some food, namely pizza.

At 27 August, 2008 17:54, Anonymous NCguy said...

75% of what the Drive-By Media dwells on is a waste of our time, IMO.

At 27 August, 2008 19:17, Blogger GUNNY said...

NCGuy wrote:
"75% of what the Drive-By Media dwells on is a waste of our time, IMO."

Clearly, we have a candidate for Comment of the Week.

Rev, I'll ask Mister Hand if we could join his class, but don't forget to tip the pizza guy.

At 27 August, 2008 23:13, Blogger Kyle said...

You know I agree. However I would say since they can't list all the stocks they have no choice, it seems, but to continue to do it the way they've been doing it or to cut it out completely.

I don't think it's a big waste of my time b/c it's usually only a ten or so sec. thing.

speaking of which, you inspired me to check out my measly stocks.

At 28 August, 2008 07:57, Anonymous Anonymous said...

Ah man, this new post is bogus. Hey, James Galyon...I know that guy.


At 28 August, 2008 08:38, Blogger Lance said...

I sold my Pancho's stock, because they don't have fortune cookies.

I guess you could say I lowered the flag on that investment.

At 28 August, 2008 08:57, Blogger Timothy said...

I will ask my dad... he's been in the business for 50 years...


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