Related tags:
stockmarket + (19)
finance + (10)
money + (6)
markets + (6)
business + (5)
economy + (5)
investment + (5)
investing + (5)
recession + (4)
fraud + (4)
economics + (4)
brokenlink + (4)
bonds + (4)


Users that often use this tag:
Mutant (2)
owillis (2)
Steven Den Beste (2)

Invented by Charles Dow in 1896, The Dow Jones Average ("The Dow") is perhaps the most widely known metric of equity market behaviour. Calculated as a price weighted average of thirty stocks, The Dow is generally eschewed by professional investors who prefer the broader S&P 500, a so-called market capitalisation weighted index consisting of 500 stocks. Regardless, proponents of the Dow claim its simplicity, long history and careful design as a reliable proxy of US economic activity as points in its favour. But can they now claim predicability as well? [more inside]
posted by Mutant on Oct 23, 2010 - 19 comments

Academic discussions of stock markets frequently reference The Efficient Markets Hypothesis; an idea that share prices are fairly valued, their prices reflecting all available information. However folklore such as "Sell in May and go away", which proved prudent in 2007, clashes with this theory. [more inside]
posted by Mutant on May 15, 2008 - 11 comments