The 2015 Market Crash

[Paperback Writer]

Right, it's most quoted because it has bigger numbers that sound really dramatic. The S&P does a better job on telling the story of the market given that it includes 500 companies instead of 30 blue chippers.

As mentioned, investors should look at percentages and reference the index that most closely approximates their investment portfolio. For me and many other investors holding low-fee, index-based funds; it's the SP 500. There have been times that the media has mentioned that the DJIA was down when my portfolio was about even or had a very slight gain. Long ago, I adopted Lebowski's investment strategy of buy-and-hold while allowing one's Sirus radio to expire.

[Jeff Lebowski]

Ok, if you say so. Look, the DJIA is fine but the S&P500 or even broader based market indexes are clearly technically superior metrics. It's not that big of deal given that the daily correlation for the DJIA and the S&P500 usually hover around 0.95. Really, if you want an overall look at the markets you should do something like: SPY, EFA, EEM.

Historical daily return correlation: 1985-2014

                ret          
tick           ^DJI     ^GSPC
    tick                     
ret ^DJI   1.000000  0.965008
    ^GSPC  0.965008  1.000000

0.965?

lol @ Eddie Jones

[Jeff Lebowski]

As mentioned, investors should look at percentages and reference the index that most closely approximates their investment portfolio. For me and many other investors holding low-fee, index-based funds; it's the SP 500. There have been times that the media has mentioned that the DJIA was down when my portfolio was about even or had a very slight gain. Long ago, I adopted Lebowski's investment strategy of buy-and-hold while allowing one's Sirus radio to expire.

[Moliere]

0.965?

lol @ Eddie Jones

[Bo Diddley]

but it's CL if you are a trader and more people care about Brent

I follow the S&P. The Dow is fine but it's a weird and antiquated way to determine the Heath of the stock market. The only reason it still gets airtime is because it's bigger in terms of dollars. It sounds more dramatic to have a 619 point rally instead of a 73 point rally. And in that case, the dollar amount of the rally is meaningless. People should be using percentages...but what do I know

You probably want us to go metric while we're at it?

Edit: I should say that I sock the majority of investment money away in an S&P index fund (love the TSP). But where most of my retirement income will come in government funded pensions, I rarely even look at how my TSP is doing. I'm a buy and hold kind of guy--long term hold.

[Donuthole]

How did the Dow finish out the day? All those financial websites are blocked at my work.

[Uncle Ted]

How did the Dow finish out the day? All those financial websites are blocked at my work.

You should try not to work all night and go home at some point.

[creekster]

You should try not to work all night and go home at some point.

But then he couldn't plausibly post to make a point.

[TripletDaddy]

lol. CMBF is a dunce. At least Donald trump agrees with him though.

[byu71]

I stumbled onto this thread. Gee I forgot Trump isn't very smart when it comes to the market. Of Course Who Is who makes Short Term predictions?

I am curious CMBF if you are still in cash waiting for 13-14 K? Seriously not trying to be a jerk, but curiuos.

[Moliere]

750 now you damned anchor baby!

[PaloAltoCougar]

I stumbled onto this thread. Gee I forgot Trump isn't very smart when it comes to the market. Of Course Who Is who makes Short Term predictions?

I am curious CMBF if you are still in cash waiting for 13-14 K? Seriously not trying to be a jerk, but curiuos.

OK, you're kind of being a jerk, but I endorse your post here. From the date of the OP, I believe the Dow, S&P and Nasdaq are all up around 15%, missing the -33% prophecy by just a tad. I'm happy to cut CMBF some slack here, but why does Trump seem Teflon-like to the obvious point that he's a total dunce when it comes to predictions? My favorites are his quotes from late 2007 about how the RE market was going to be very strong for many years to come, that there was never a better time to get into the mortgage business, and that Trump Mortgage would be yet another amazing success.

[byu71]

OK, you're kind of being a jerk, but I endorse your post here. From the date of the OP, I believe the Dow, S&P and Nasdaq are all up around 15%, missing the -33% prophecy by just a tad. I'm happy to cut CMBF some slack here, but why does Trump seem Teflon-like to the obvious point that he's a total dunce when it comes to predictions? My favorites are his quotes from late 2007 about how the RE market was going to be very strong for many years to come, that there was never a better time to get into the mortgage business, and that Trump Mortgage would be yet another amazing success.

Kind of of a jerk is progress don't you think.

Watching the dem convention I am learning how to gloss over my real character.

I agree with your Trump comment

[wuapinmon]

OK, you're kind of being a jerk, but I endorse your post here. From the date of the OP, I believe the Dow, S&P and Nasdaq are all up around 15%, missing the -33% prophecy by just a tad. I'm happy to cut CMBF some slack here, but why does Trump seem Teflon-like to the obvious point that he's a total dunce when it comes to predictions? My favorites are his quotes from late 2007 about how the RE market was going to be very strong for many years to come, that there was never a better time to get into the mortgage business, and that Trump Mortgage would be yet another amazing success.

I really pay attention to what Ron Paul has to say about silver and gold.

[Topper]

Apparently, business is good in Utah, as it was rated by Forbes as the best state for business.

http://www3.forbes.com/business/the-best-and-worst-states-for-business-2015/11/