How the Dow Distorts the History of Wall Street: Echoes

[ruger17hmr]

How the Dow Distorts the History of Wall Street: Echoes


You wonder how meaningful all the Market Indices are after reading the article.

How the Dow Distorts the History of Wall Street: Echoes - Bloomberg

 

[Prometheus]

Craps, Roulette, slots... what Vegas game is best compared to wall street and the big apple?

Smoke and mirrors, shell games...

 

[CarmelHP]

The purpose of the stock market is to enable more evenly distributed theft and deception.

 

[88GT]

Craps, Roulette, slots... what Vegas game is best compared to wall street and the big apple?

Smoke and mirrors, shell games...

The purpose of the stock market is to enable more evenly distributed theft and deception.

Though those points are arguably justified, that is not what the article was addressing.

 

[ALB]

Interesting read, thanks.

 

[jeremy]

Tag for future reading and comment

 

[CarmelHP]

Though those points are arguably justified, that is not what the article was addressing.

It was superficially addressing how the Dow was not representative or stable across time. Fine. Underlying that is the arbitrariness of the market, the ease of manipulation by large players, and the false face that the market presents. So why do so many put unjustified blind faith in its reasonableness and purity?

 

[jeremy]

So why do so many put unjustified blind faith in its reasonableness and purity?

Cause so many of the Masses do not truly understand that the DOW is just an illusion. I mean they are taught in School that the DOW is an index of how well the economy is doing...

It is sad that we are seeing Wealthy Persons know playing in the Ag Land Game, due to it being a better investment. Ag Land has had several sales that broke the $10k/acre mark in the last couple of months...

 

[CarmelHP]

Cause so many of the Masses do not truly understand that the DOW is just an illusion. I mean they are taught in School that the DOW is an index of how well the economy is doing...

It is sad that we are seeing Wealthy Persons know playing in the Ag Land Game, due to it being a better investment. Ag Land has had several sales that broke the $10k/acre mark in the last couple of months...

Bubble, bubble, bubble, toil and trouble.

 

[jeremy]

Bubble, bubble, bubble, toil and trouble.

LOL!

I just hope to be able to ride the crash down, without losing Generations worth of toil...

 

[88GT]

It was superficially addressing how the Dow was not representative or stable across time. Fine. Underlying that is the arbitrariness of the market, the ease of manipulation by large players, and the false face that the market presents. So why do so many put unjustified blind faith in its reasonableness and purity?

The DJIA is not the stock market. It is a mathematical representation of the trading done on the stock market. The two are not synonymous, even though they have become practically so. Even a perfect market would still be misrepresented by the DJIA because of what the DJIA is. I'm not disagreeing with your characterizations of stock market failures, but the DJIA has nothing to do with those.

To answer your question: simple ignorance. But it also sounds like you think any involvement in the stock market is the result of unjustified blind faith. Is this what you think?

 

[CarmelHP]

The DJIA is not the stock market. It is a mathematical representation of the trading done on the stock market. The two are not synonymous, even though they have become practically so. Even a perfect market would still be misrepresented by the DJIA because of what the DJIA is. I'm not disagreeing with your characterizations of stock market failures, but the DJIA has nothing to do with those.

To answer your question: simple ignorance. But it also sounds like you think any involvement in the stock market is the result of unjustified blind faith. Is this what you think?

Unless you're a large institutional player or a very shrewd arbitrager, then yeah, pretty much, even then you're as likely as not to be fodder for the Corzines, the Madoffs, and mega-brokerages.

 

[jeremy]

To answer your question: simple ignorance. But it also sounds like you think any involvement in the stock market is the result of unjustified blind faith. Is this what you think?

I was told from the time I was very Young if you want to invest Money into something, buy land. Only a Fool plays at the Markets...