Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Analysis Class for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Peter Lochowicz who wrote (811)	5/29/1998 7:37:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

Thank you, Peter. Dow Jones index included 30 industrials which are representative of the industry in American economy. It is therefore an indicator of the prosperity and progress of our economy. However due to the global nature of the companies included; it is also an indicator of global economy to a small extent. Dow is now multiplied by 5 of the actual price of the stock prices. The multiplication factor is due to previous splits of shares. Many indicators are not usable due to actual economical changes. When economy was flat in the 1970s and interest rate went too high, many indicators worked well. When economy in the 1980s effected by low crude oil prices, the indicators were quite different. Today, the economy is roving from industry to industry dependent on productivity; microeconomy is the prosperity of individual companies. Gross indicators will all fall out of favour.