Where do you get your finance news / Why the DOW sucks
Here's one of those "real content" posts. With the election approaching in America, the hot issue being our economy, and recent Wall Street turmoil, Americans are seeking news and media to inform them about our economy. Today I'm going to explain one small indicator in our economy and then give you a tool to see how reliable your news sources are. Since you are all interested in the economy and want to learn a little about finance, I wont shy away from the details. First, let's talk about stock indexes. When we talk about the wealth of an economy (the US economy, the world economy, ...) we need a way to quantify this wealth. The most realistic way to do this is to look the aggregate wealth in a certain market. This stems from the financial theory that individual investors make decisions with their money, and the sum of this money reflects the aggregate wealth, and the aggregate wisdom of everyone involved. An index is a financial measurement that takes some ...
