Is it time to change the Dow?
U.S. News - 08/08/2016
“The Dow is a quirky and incomplete barometer of U.S. equity markets,” says Paul Bolster, professor of finance at Northeastern University’s D’Amore-McKim School of Business in Boston. Yet in balance with another number – the Standard & Poor’s 500 index – the Dow maintains surprising relevance.
“In spite of monitoring the share price level of only 30 important companies, its movements are in near perfect agreement with other broader measures of market movement such as the S&P 500,” Bolster says.