DJIA

cowboynude

I have $200k in an IRA with no debt at 32 allocated as follows: 80% VT (Core) 17% ASML (Satellite) 3% cash (Powder) If ASML goes over 2100 I take profit and buy VT. If ASML goes to 1500 for cyclical reasons like capex cooldown I sell VT and buy more ASML. If ASML goes to 1500 for structural reasons like China export bans or quantum competition, I sell all and VT and chill until I find a new monopoly satellite. Alternatives I considered to ASML for my satellite: - LEU/BWXT combo (nuke ren picks and shovels with monopolistic upside, but nuke ren is more speculative than continued ai capex… if i was looking to retire at 60 instead of 40 i’d own more LEU). - ASTS (seems like a clearly better product than global star and starlink, although the fundamentals are a mixed bag) - AMAT/LAM (basically the same chip-chokepoint-play as ASML except at a discount because the moat is not as crazy… all three rely on the same 3 buyers (TSMC, Intel, Samsung) who in turn rely on the Megacap capex. I see AMAT/LAM as cheaper riskier little cousins of ASML) Long story short, 80% VT and chill, 0-20% satellite based on conviction (can be literally anything other than VT, doesn’t have to be a stock, it could be the DJIA or the S&P. Just something to test against VT. Whatever you have conviction on. It doesn’t have to be semiconductor wafer fab equipment or small reactor fuel in 2040. It could be Nike ACG driving hype and returning Nike to prominence. At one point my biggest stock holding was the Uniqlo parent company because I really liked Uniqlo. Almost every stock is priced perfectly. Hence the 80% VT. Remember, investing 100% of your portfolio into something like VT is still not “boring.” It’s boring compared to QQQ or individual stocks. But VT is still roulette compared to bonds and mutual funds.

SidewaysFancyPrance

I saw a 900pt increase in the DJIA today with a news headline that it was due to investors rotating from tech into banks/retail. I have no clue how that explains an increase. That's not a pivot. That's something else.

clubdirthill

Market rotation from QQQ to DJIA

actias_selene

Other than DJIA and Nasdaq Composite(not QQQ), all are float weighted or at least adjusted.

Eastern-Joke-7537

Diversify with different stocks. Buy a few shares of each. Let it right. Too many buy/hold index funds but swing trade stocks. Probably not the way to do it — overall indexes move off behavioral psychology. Individual stocks follow the market. The trend is your friend until it’s not. However, at this time, it appears that EVERYTHING is headed for Asset Hyperinflation. Look at the charts. Look at the fundamentals. Gold and silver are probably worth buying too… at some point… maybe if gold spikes again to new highs then suddenly crashes. You could buy in at that low. Don’t over trade index ETFs but don’t under trade either. Just buy less than you think you need and trade a bit less. But take your signals. If you wanna get better you have to start somewhere. Invest in individual stocks each month. Hyperinflation lifts all boats. The indexes will lead individual stocks but you need the 100X stocks to turbo charge your portfolio. I’ve made all the bad trades already so I don’t care as much. About to start buying/trading. Maybe DDM (3X DJIA). If I see a BIG opportunity to swing trade (or buy puts) I will do that. But options were overpriced when I was trading them a few months ago. Especially SLV and GLD as those metals surged into tops then melted down in bear market sell offs. Look at the ticker, check out the charts. Pick up some index ETFs and track them. Find a comparable market in history (is there one?). Pick up a share or 3 or as many stocks as you think sound interesting. Is it worth buying dividend stocks? Who knows. 😂

therealCatnuts

The stock market has always been an overvalued house of cards. Warren Buffett’s “irrational exuberance” quote was in December 1996. The DJIA was 6277.  

DoinIt4DaShorteez

DJIA Jan 2, 1970: 809.20 DJIA Dec 31, 1979: 838.74

Ok_Cry7572

DJIA, S&P 500 and Russell 2000 up 10 of last 13 years on June’s first trading day

pooterssssssssss

why do they even show the DJIA? The RUT(Russell 2000) is what matters... today the Russell is getting decimated.

pooterssssssssss

Anyone know why DJIA is pumping today?

pooterssssssssss

Yes i feel this could be a 1987 style rally. Remember 1987 before the crash? DJIA was up like 30% ytd before Sept 1 1987

Careful_Flamingo6272

It sucks.  I left a comment on the S&P DJIA website for the public consultation on this.   

Good_Application6245

**the year is 2030**: DJIA still consolidated at 49k

jessewalker2

It’s crazy to me that people are saying the stock market doesn’t go up fast enough. If they had invested in the DJIA 39 years ago their money would have multiplied by 22 times even accounting for the Crash of Black Monday, Great Recession, and all the little recessions in between. All of that doesn’t even account for the added earnings in that time. But sure, you bought last week and you’re upset you’re not a millionaire/billionaire/Jeffrey Epstein. And what would happen if it were that easy? You think when everyone is a billionaire you’re still somehow special? Some people are just regarded.

_Blitzer

Now... compare that same $10k invested in a broad market index at exactly the same date... or for the tech stocks, the NASDAQ. Apple's CAGR since it went public is about 20%. The NASDAQ over the same period is about 13%. Consistently beating NASDAQ by 7% is impressive, but not as earth shattering as it looks at face value. Coca cola went public in 1919. it's long term CAGR is about 12%. I think the DJIA is something like 7-10% depending on how you calculate it. Again, impressive, but not earth shattering. Plus, you picked the winners. There are so many more losers out there, which won't beat the market overall.

nigelnyc1

USO at 151...people are selling so they can afford to sit in traffic Memorial Day weekend. Looking for DJIA -700 by morning.

Good_Application6245

nobody talks about how DJIA sits at 49k and wont cross 50k again

XBronx1

SPX and NDX making new highs today but DJIA and RUT look bearish. There are numerous bearish divergences developing that after a small correction and then another new high may be the end of this move up. Bearish divergences: Fewer stocks participating in this rally. Advance-Decline line deteriorating These indices at or above the Bollinger Band associated with tops. Correlation Index deteriorating VIX hasn’t made a new low in 2 years, VXN no new low in months, SVXY not making new highs, UVXY hasn’t taken out it’s low in couple of months since the February stock market highs, HYI (Junk Bond etf) is also not making new high that strongly correlates to stock indices along with SVXY (short VIX or Volatility) Sentiment Index at levels associated with tops 77+. SPX and NDX both in a 3rd wave advance of a 5th and final wave off the 3/30/26 low. All is needed for this 3rd wave to complete, a 4th wave correction, then a final 5th wave of 5 up. Thereafter a larger correction should ensue. The bearish development of both the Dow and the Russell (RUT) will drag down the other indices eventually maybe by week’s end or early next week. Time to lighten up portfolios!

PhysicalConsistency

The hell are you talking about? It's been pumping for a decade. The DJIA was 17,540 on May 9, 2016. It's hovering around 50k today. That has nothing to do with China's oil supply or Hormuz or AI or anything else. Even if the AI bubble popped tomorrow, even if WTI spiked to $150/barrel, even if a comet was on a direct course for earth, it will continue to pump until world war III destabilizes the governments which are enabling this inflation stashing. We learned the worst lesson from the great recession, and that lesson was that shit doesn't have to go down if we don't want it to.

Samjabr

So, turns out they should have left INTC in the DJIA

WickOfDeath

Those AI investors wouldtn spend one trillion dollars into AI datacenters and the bond buyers wouldnt have bought around 600 billion worth of bonds to finance this thing... at the one hand it could go on forever, or it could turn out that AI is a wrong turn. Since most financing and buildouts are betting between a return of invest between 2029 and 2030 those years would be the key, actually the market is a safe bull run for those who make the hardware and sell them to hyperscalers... processors, memory, AI hardware, SSD storage, and think how sensitive Constellation and Uranium Energy reacts on Mag 7 ups and downs... the future AI needs hardware but also electric power, a grid between the power plant and the consuming data center... that is a cluster of technology. Actually that alone drives the stock market up, other sectors are even declining. Look at the Dow index, (DJIA) it is frozen at 49K where the Nasdaq makes one K after another. The Dow is more in health care, credit card companies, industry... and Nvidia. The SP500 has more tech stocks so it is up also. It could happen that the traditional sectors will be up again when the tech sector corrects... and there will be corrections, but it would be far to early to short anyhting, or buying puts. That would be just wasting time value or money so to say.

Taiyoken

the top signal is DJIA passing 50k, as long as it's under we will pump forever

isitdonethen

The Dow Jones Industrial Average (DJIA) skyrocketed from 191 in early 1928 to a peak of 381.17 on September 3, 1929. Driven by easy credit, margin buying (investors putting down only 10%), and rampant speculation, stock values quadrupled between 1920 and 1929, completely detaching from underlying economic fundamentals

maomaocat

DJIA doings its best to keep the market up ... just go down, down

user-namepending

The problem is that the economy was **the** top issue for voters in 2024. And Trump uses the DJIA as his personal report card. So everytime the markets perform better than expected these clowns take it as a personal insult

Good_Application6245

the year is 2030 spy is approaching 9000, DJIA still hasnt crossed 50k

user-namepending

There is not a single 401(k) plan that invests in a mutual fund tracking the Nasdaq. Full stop. You are making this up. >im not sure why thats the point you keep overlooking Because it has nothing to do with the post I was responding to. If you paid any bit of attention you would see that the post I was responding to is that retail would be holding the bag. 😒 As if you didnt already have a choice to invest into something other than QQQ or SpaceX. SPX is not being forced into SpaceX, DJIA is not being forced into SpaceX, RUT is not being forced into SpaceX. There is only one single index fund that is buying into SpaceX. And not only is it a choice to not invest in QQQ, there's a pretty damn good one like SPMO which already tracks 100 momentum stocks of the S&P500.

user-namepending

There is not a single 401(k) plan that invests in a mutual fund tracking the Nasdaq. Full stop. You are making this up. >im not sure why thats the point you keep overlooking Because it has nothing to do with the post I was responding to. If you paid any bit of attention you would see that the post I was responding to is that retail would be holding the bag. 😒 As if you didnt already had a choice to invest into something other than QQQ or SpaceX. SPX is not being forced into SpaceX, DJIA is not being forced into SpaceX, RUT is not being forced into SpaceX. There is only one single index fund that is buying into SpaceX. And not only is it a choice to not invest in QQQ, there's a pretty damn good one like SPMO which already tracks 100 momentum stocks of the S&P500.

mudley801

DJIA year close 1912: 87.87 DJIA year close 1932: 59.93

ConsciousStreet-0866

On September 3, 1929 DJIA closed at 381.17. On July 8, 1932 it closed at 41.22, -89% from the peak. It didn't recover back to its previous peak until November 23, 1954 -- exactly 25 years, 2 months, and 20 days.

Odd-Dragonfruit-1186

DJIA is a boomer ticker... nobody cares about the dow here

Dull_Lavishness7701

What does this mean in relation to releasing the epstein files? I only speak DJIA

SirGlass

I didn't think I was implying the USA goverment just the USA economy. >You aren't making more money, Chevron et all is. And Chevron is a USA company based in Houston listed on the NYSE and part of the S&P500 index and part of the DJIA So yes in a discussion why the market is going up one of the reason why is companies like Chevron what is a USA based stock and its part of the S&P500 index and DOW is pushing it up.

jerome-yellen

DJIA up 34 of last 44 April monthly option expiration weeks (next week). Avg wkly gain 1.00%.

Any-Tennis4658

"All time highs"... Before accounting for the Fed printing more money* They are the nominal all time highs, you best hop in, this shits going to the moon (jokes on all of you, I am old enough to recall the DJIA at like 5k, we are already at the moon and beyond!)

Responsible_Knee7632

For the 5th time this month lol. Just look at the monthly DJIA, NASDAQ, and S&P charts

Responsible_Knee7632

Didn’t you hear? The DJIA just hit 50k and we’re talking about war????

portomar

DJIA is up 7% yoy

portomar

What are you talking about? The DJIA is up 7% yoy

SpicyElixer

We’re going to be jan 19 2020 (DJIA 43,487) soon enough. Literally zero gain president. Republicans ruin everything.

3boobsarenice

Brief The Dow Jones Industrial Average (DJIA) experienced significant volatility leading up to the Iraq invasion on March 19, 2003, followed by a sharp "relief rally." After months of decline due to uncertainty, the Dow jumped 2.3% on March 20, 2003, and rallied over 8% in the week following the start of the war, as investors perceived the conflict would be brief.  Key Timeline of the 2003 Iraq Invasion and Market Reaction: Pre-Invasion (Early 2003): Markets fell for months, pricing in uncertainty surrounding potential military action. March 18, 2003: Stocks surged, with the Dow rising 282 points ahead of the official invasion, on hopes for a quick resolution March 19, 2003: Operation Iraqi Freedom began with bombing in Baghdad. March 20, 2003: The Dow rose 2.3% the day after the invasion began as the "certainty" of war replaced uncertainty Week of March 17-21, 2003: The DJIA rose 8.4%, marking the biggest weekly gain in over 20 years at that time April 9, 2003: U.S. forces took control of Baghdad, ending the main invasion phase. Post-Invasion: The Dow continued to recover, with the market up over 30% from the pre-invasion low to the end of 2003 Key Takeaways: Certainty Boost: The official start of the war caused a rally because it resolved months of pre-war uncertainty. Rapid Gains: The Dow rose over 8% in the month following the start of the invasion Sector Performance: While the general market rose, oil prices fell by roughly   in the first week of the war, reversing earlier fears, explains the 

BNA-mod

I bought, but very light… AMZN, NVDA, AIRJ, SSO, IBM, LLY, SOFI, ASML, BK. And when I say light, I mean light. Figure it’s DCA time. The market is basically almost back to where it was and I don’t see it dropping much further. If you include an inflationary factor of 2.4% for the past year, the amount of devaluation of your dollar, the S&P is up about 9.6%, the NSDQ is up about 18.5% and the DJIA is up about 8.5%. I believe that’s a reasonable point to DCA.

MezcalFlame

I hope we're wrong, too, and instead see DJIA 100k.

AlfB63

We are currently in correction territory for the DJIA, the NASDAQ composite and the Russel 2000. I'm sure we are in other indexes but I don't kept up with them. We are not yet in correction for the S&P500 but are close. A correction is calculated based on the 52 week high.

RedShiz

The DJIA is down 9% since that Bondi quote. Just a bit over a month ago.

Rivster79

The DJIA is down over -8% since last month. What are you talking about?

mikebunchkin3727

It won’t be a sudden crash, but it’s going to be a slow burn……DJIA/S&P will slowly slip away. Wham-bam Bondi jinxed the market and the DJIA will be 38K in a few months. Mark my words. It’s been over inflated for years now

International-Ant174

I agree with your take on it: until the actual REALITY of things improve, this is all speculation on what words are thrown out by the president. If the strait situation stabilizes, the volatility will dissipate and the markets will likely increase (albeit at a potentially lower rate due to the lingering effects of this "action"). If the straits remains a shooting gallery, restricting the movement of goods, the market will likely continue to drive down (due to knock-on effects impacting all the finished goods dependent on this shipping channel). It makes for a tough time for investors to decide whether to push in or pull out of the market. If you have funds on the sidelines right now, do you jump in when you see a 10% drop in DJIA (got pretty close recent)? Or is that even the floor and will keep going to -20 or -30%? It really hinges on the straits, and unfortunately it appears there was no significant consideration about securing that route prior to throwing a few billion in missiles around.

Healthy_Hippo_915

In all seriousness, what market is down 10%. DJIA is down less than 5% YTD S&P500 is down about than 4% YTD

Significant-Moose171

You're on the internet too much. DJIA has traded in a \~1.5% window for the last two weeks. NASDAQ Composite a little higher, call it 2.1%. These are less than bumps. Few people are making moves based on what he says. I know it doesn't feel that way to you, but that's why people say riding daily and weekly candles requires a lot of mental and emotional fortitude.

Guy_PCS

The stock market is different from your perspective.  "bada bing, bada boom" |SYMBOL |PRICE |CHANGE |%CHANGE | |:-|:-|:-|:-| |[NASDAQ](https://www.cnbc.com/quotes/.IXIC)|22,170.755|\+523.144|\+2.42| |[S&P 500](https://www.cnbc.com/quotes/.SPX)|6,647.46|\+140.98|\+2.17| |[DJIA](https://www.cnbc.com/quotes/.DJI)|46,621.27|\+1,043.8|\+2.29| |SYMBOL |PRICE |CHANGE |%CHANGE | |:-|:-|:-|:-| |[NASDAQ](https://www.cnbc.com/quotes/.IXIC)|22,170.755|\+523.144|\+2.42| |[S&P 500](https://www.cnbc.com/quotes/.SPX)|6,647.46|\+140.98|\+2.17| |[DJIA](https://www.cnbc.com/quotes/.DJI)|46,621.27|\+1,043.8|\+2.29|

itsatumbleweed

I can't believe that the taco stuff keeps working. It's temporary but Brent is down $15/barrel and DJIA is up 1000 points since the tweet. Even though Iran said no contact has been made.

DecembersDragons

Iran just said there were no talks. Futures fell a percent. DJIA futures up 2.5% from Trump tweet. Back down to 1.5% from Iran tweet. We're literally getting yanked around by an online argument. 

-Never-Enough-

If you're looking to buy the dip, it's still too soon to bulk buy. DJIA is up 7% YoY and only down less than 2% for the past 6 months. S&P 500 is up over 12% YoY and down 2.8% for the past 6 months. DCA from here would be good but definitely expect the market to fall more if you think it's a dip worth calling a dip.

ThisismeCody

And yet, the market will go on. Rest assured the DJIA will outlive this moron.

BakerBunearyBella

That is actually a common misconception. The stock market did not reach a high for that long, but it does not mean that the portfolios did not recover. Pull up the chart of the DJIA (can't post a pic in comments) The only way to lose everything is if you lump sum invested your life savings at the peak in 1929 and we're planning to retire soon. Then it would take 15 year to recover. Most people were not in this situation. More likely is you just started you first job that year, and there isn't even any money in your account to crash. Even if there was, you are planning to hold for 40 years anyway, and by that time, the crash is well over. Let's say you were a fairly investor that started investing in 1926 or 1927 a few years before the crash. By 1936, they were back in the positive. Let's say you started after the previous peak in 1920. Again, by 1936 or so, they would have all their money back if they held. It follows if you were invested even earlier than that, your chilling even more. All the depression did to buy and hold investors (primordial Bogleheads) is to create a 5-10 year period where it would have been bad to retire for some people. Granted index funds did not exist back then, but you still could have had a diverse portfolio to follow the DJIA.

SikoraP13

Asset | 5Y CAGR | 10Y CAGR | 20Y CAGR -----------|---------|----------|--------- Gold | 20.98% | 13.70% | 11.03% S&P 500 | 10.55% | 12.23% | 8.36% DJIA | 6.85% | 9.97% | 7.23%

tachyonvelocity

Something going on after hours: DJIA losses are recovering Trump: We're getting very close to meeting our objectives as we consider winding down our great military efforts in the Middle East Trump says other nations must guard Hormuz, not us

tachyonvelocity

Something going on after hours: DJIA losses are almost all back up Trump: We're getting very close to meeting our objectives as we consider winding down our great military efforts in the Middle East

Street-Badger

If DJIA dips below 35k they will probably have to start arresting pedos again.

EvolvingDior

NDX down less than DJIA is insane to me.

The_Alan_Greenspan

If $SPX could go down and meet up with its buddy $DJIA for a coffee, that’d be great.

Darth_Ra

And yet, somehow folks seem to be managing it? DJIA up .34, S&P up .37, Nasdaq up .41. I wouldn't call any of that "up", not really... but it does at the very least seem to be holding steady despite it all.

EvolvingDior

The daily chart of SPX, NDX or DJIA -- any will do -- is enough to tell you where we are headed this summer.

ThetaFarmingRegard

March 12, 2020 – Global stock markets crashed due to the COVID-19 pandemic and the United States travel ban on the Schengen Area. The DJIA goes into free fall, closing at over −2,300 points, the worst loss for the index since 1987. March 16, 2020 - The DJIA falls by 2,997.10, the single largest point drop in history and the second-largest percentage drop ever at 12.93%, an even greater crash than Black Monday (1929).

Organic-Lie4759

Heh, the last time the DJIA was this low was nov 24, 2025. 4 months of gains gone in 10 days. Whoosah.

International-Ant174

Looking for opinions of others on this topic: Given the current state of global affairs (Iran "conflict", looming crude "crunch", et cetera), are we facing a market retracting to the point of losing all the gains from the last 11 months? Looking back, DJIA closed at 38,314ish on April 4th last year (due to instability from the Executive Branch tariffs). It then peaked at 50,115ish early last month (\~ 30% gain), but has since dropped \~ 6.5%. If crude stops flowing, what's to stop that downward trend from falling another 23% and wiping out the last year of growth? Especially on the basis that petrochemicals are the backbone of our modern existence - the products we buy, transportation (commercial and personal), much of our utility infrastructure, down to the packaging of products and even in some of our food. That's ignoring the $1B/day cost every day the U.S. is in this "conflict". Not looking to be doom & gloom, just understanding our headwinds.

confused_teabagger

I was promised a $50k DJIA and all I am getting is more expensive gas and $46k DJIA ... really making start thinking and asking questions about them Epstein files again ...

Available-Range-5341

DJIA is more representative of a random basket of stocks these days. QQQ aint gonna dip because two of the biggest components don't move, and the next few biggest components ALREADY crashed

cmrh42

Wow. And now oil is $82 and the DJIA is about where it started the year. Don't live your economic life on the daily fluctuations of the stock and commodities markets. They bounce around a lot and a day's change does not tell you if we are "winning or losing". Time will tell that.

NuanceEnthusiast

DJIA is 30 stocks and the top 10 holdings make up about 60% of the index by weight. The risk is that you’re under diversified without knowing it

BorealMushrooms

There a much larger picture developing as well. If you follow longer term trends in the DJIA MACD crossovers starting back at the housing crisis, it shows a cyclical pattern increasing in intensity that starts to break down at the beginning of February 2026, even while the US government was lauding the DOW being above $50000. The same cycle is seen in the NYSE as well. The markets are poised for a breather, and were ready for it even before Iran. If the last two bear markets are any signal, likely around 24 months for full recovery.

edoceo

This is fun and all but you've not provided any definition of what you think the crash is. Do you mean 5% drop over the week? Which symbol(s) are you watching? What if DJIA is down 5% on the week (from Monday open or last Friday close?) and QQQ is only down 4%? Is that a crash? You should be very specific, otherwise it looks like you're just engagement farming. Try something like: If RUT is <$2272.50 by Friday close I'll send the rando $2k /djb

OtherwiseAlbatross14

Whether you meant last year as in all of 2025 or just the past year as in 365 days, you'd have been up well over 10% in the S&P 500 or DJIA or NASDAQ. Some of those I listed are almost up 30%. If you didn't do well, that would be your own fault and emerging markets was absolutely not the only way to do it.

Several_Vanilla8916

Removed by moderator: DJIA chart

Eastern-Joke-7537

Yeah. I made 6 bucks today. Ask me anything. Looks like stonks are tracing out the 1964-1982 price action in the DJIA, at least on a short-term basis. I would look for a “short term low”. Then a bit of a bounce to see if the DOW can retest those Bondi numbers… could head lower again though…. After the next low then I think you can go long well into next year.

merlin2181

Because WMT moved to the Nasdaq Exchange. So all those “set it and forget it” 401k investors that keep pumping money into the system every week are buying it via S&P 500 index ETFs, DJIA ETFs and now NASDAQ Index ETFs.

EvolvingDior

The DJIA has dropped like a rock since Bondi set its pedo limit.

Rare-ish_Birb

Four reasons: 1. Too much global liquidity and 401ks chasing too few US companies 2. It's in the DJIA index, a major recipient of foreign carry trade 3. Online business outcompeting AMZN D. AI enabled promises, which may or may not materialize, but they sure smell sweet, like unicorn p👀p. 😂

EvolvingDior

Beta for the DJIA is lower than SPX.

Eastern-Joke-7537

That wouldn’t shock me. But the DJIA has big caps and oil and industrials so they should be good.

Eastern-Joke-7537

What does DJIA mean, again???

thehacktivist1

Wow you mean that the massive dot com bubble bursting in 2000 and the the 9/11 attacks causing a 14 percent drop, coupled with a rising housing market that saw the DJIA reach ATH by 2007? You think the wars in Iraq and Afghanistan were the reason for the "slump"? The reason why it was the lost decade is because everyone was starting to recover from the dot com bust only to get hammered by the banking crisis. If you think that wars are bad for the market, you're reading history wrong

Ok_Cry7572

March 1st trading day bullish. DJIA up 51 times in the last 76 years. Recent 25-year track record strong. S&P 500 best, up 64.0% of time. NASDAQ avg 0.47%

Rare-ish_Birb

If NVDA had seen any material decline in sales, they'd have to report it.....and they haven't. So I expect a beat and raise, and the market will decide if the multiple is too high, or too low to support the price action. No position, except some puts on the DJIA.

Rich-Badger-7601

How long until we start seeing "The DJIA is over $50,000" in campaign ads

Eastern-Joke-7537

When the DJIA was down around 760 earlier I bought a DIA call. Let’s see what happens!

Business_Raisin_541

Isn't DJIA heavy in industrial? So it is good if you think tech is overvalued

JohnnyFartmacher

It being price weighted means that it just leans in a different direction. Goldman Sachs has a high share price and comprises 11.4% of the DJIA. Agreed though that there are other options to consider. I believe the S&P equal weight index historically has a slight advantage over the normal S&P market-cap weighted index, but over the last 10 years, the normal S&P has blown the equal-weight out of the water.

blorg

It's not an "ex-tech" index. NVDA is 7.83% of the S&P500 which has ~500 stocks. It's 2.34% of the Dow Jones which has 30. The share-price weighting of DJIA doesn't make sense, but it does result in it being *substantially* less tech-heavy than the S&P500. S&P500 is 25.28% Electronic Technology + 19.71% Technology Services. DOW is 12.47% Electronic Technology + 10.46% Technology Services. DOW has a lot more finance and other sectors of the economy. https://www.etf.com/VOO https://www.etf.com/DIA

blorg

It is older, but the S&P500 dates back to 1957, it's not exactly new either. Here's [a comparison since 1992](https://curvo.eu/backtest/en/compare-indexes/dow-jones-industrial-average-vs-sp-500?currency=usd) which backs up your point they perform similarly, since then DJIA has a CAGR of 10.81% while the S&P500 did 10.80%, although there were periods of larger divergence.

DKeai

I found DJIA correlates well with value stocks. I use it side by side with SP500 (overall market) and NASDAQ (growth market).

brewgeoff

You fundamentally do not understand. The SP500 is a broad investment. The DJIA is a way of bearing the economy across a broad range of industries. The Dow picks one company in each sector as a way of getting an impression of what is happening in different parts of the market. Using the SP500 does not actually measure the breadth of the economy, it measures what is going on with the largest companies.

PolitzaniaKing

Dow Jones Industrial Average (DJIA) (USA) Description: Features 30 large U.S. companies. Weighting Method: Price-weighted. Percentage of World Market: N/A (U.S. market specific). The Dow Jones Industrial Average (DJIA) represents about 25% of the total market capitalization of the U.S. stock market1. This is because the DJIA includes 30 of the largest and most influential companies in the U.S., but it does not cover the entire market like broader indices such as the S&P 500. Alternative: Consider the S&P 500, which includes 500 large U.S. companies and uses a market-capitalization-weighted methodology, offering a more comprehensive view of the U.S. equity market. This alternative provide investors with better diversification and more accurate reflections of market dynamics compared to price-weighted indices, aligning with modern investment strategies and objectives. Price Weighted Indexes A price-weighted stock index is generally considered inferior to a market cap-weighted index for several reasons: 1. Sensitivity to Stock Price Changes Price-Weighted Index: This type of index gives more weight to stocks with higher prices, regardless of the company's overall size. A change in the price of a higher-priced stock can disproportionately affect the index. Market Cap-Weighted Index: This type of index gives more weight to larger companies based on their market capitalization (share price multiplied by the number of shares outstanding). This provides a more accurate reflection of the overall market or sector performance. 2. Representation of Market Value Price-Weighted Index: Does not reflect the actual market value of companies. A high-priced stock of a smaller company can have more influence on the index than a low-priced stock of a much larger company. Market Cap-Weighted Index: Reflects the true market value of the companies in the index, giving a better representation of the market's performance. 3. Impact of Stock Splits and Dividends Price-Weighted Index: Stock splits and dividends can significantly impact the index. For example, a stock split reduces the price of a stock, which can reduce its weight in the index even though the company's market value hasn't changed. Market Cap-Weighted Index: Stock splits do not affect the weight of a company in the index because the total market value remains the same. Dividends also do not distort the index. 4. Diversification Price-Weighted Index: Tends to be less diversified because it is heavily influenced by a few high-priced stocks. This can lead to higher volatility and less accurate market representation. Market Cap-Weighted Index: More diversified because it considers the market value of all the companies, leading to a more stable and representative index. 5. Rebalancing and Maintenance Price-Weighted Index: Requires frequent adjustments and rebalancing to account for stock splits, dividends, and other corporate actions. This can be more complex and less intuitive. Market Cap-Weighted Index: Requires less frequent rebalancing since it automatically adjusts to changes in market value, making it easier to maintain. Example Dow Jones Industrial Average (DJIA): A price-weighted index where higher-priced stocks like Boeing or Goldman Sachs can disproportionately influence the index, even though they might not be the largest companies by market cap. S&P 500: A market cap-weighted index where larger companies like Apple and Microsoft have more influence, providing a more accurate representation of the overall market performance. In summary, market cap-weighted indexes are generally preferred for their ability to better reflect the actual market dynamics, provide greater diversification, and require simpler maintenance.

Zigxy

I wish they added Berkshire A shares to the DJIA. Then folks would understand why it’s so stupid.

johyongil

What? Go read about the DJIA and SP500 and then come back to discuss.

JanetYellenNudes

QQQ green, DJIA red. As it should be.

Eastern-Joke-7537

I think I figured that out post-2009. Yeah, those options always busted out. Just should have kept 3 or 4 shares of those stocks and kept trading DDM (3X DJIA ETF). That happens A LOT. You have to get the move right on options plays within hours.

lurkinglestr

I can't see the follow-up since it was deleted. Thanks for the info about the inclusion on the DJIA. Have a great day.

Feltzinclasp5

Yeah, how it the Dow relevant? Dow is a price weighted index of 30 companies which is useless when trying to evaluate the entire market. I manage investments professionally and DJIA isn't even on our ticker list.