Does the DOW's record actually mean anything?

[Democrats_win]

The Dow Jones Industrial index consists of 30 companies that is updated from time-to-time. For instance from the last "record" high, I figure that four companies have been added to the DOW (replacing 4 companies.) So we're actually comparing an index that is calulated using differnt components than were included in 2006 when the record was set. It seems like an apples-to-oranges comparison.

The four companies added are UnitedHealth Group, Chevron, Cisco and Bank of America.
http://en.wikipedia.org/wiki/Dow_Jones_Industrial_Average#Early-2010s_cyclical_advance

Also, the FED's Quantitative Easing (QE) policies are probably fueling the increase since the rich banks, that QE is financing, has to put their money somewhere. Too bad that money, our money, isn't helping the real economy. That's the FUBAR component of the DAMN economy we all know so well.

[OGKush]

1. I heard the Dow has no reflection on the economy when it's Down

But when it's up it does reflect the economy.

So yes and no?

[malaise]

2. Of course not - it can only mean anything

if it's sinking so that the pundits can attack Obama

[OldDem2012]

3. Once the sequester gets a grip on the economy, we'll see the market take another plunge....

....the second the big dogs start bailing out.

[raccoon]

4. I don't think it means much. The S&P 500 would be more meaningful.

And it certainly doesn't mean anything in regards to the average working person.

[Lasher]

8. You're right, the S&P 500 is a better indicator.

And that is the index the media used to cite. Sometime during the GWB administration they switched to the DJIA.

[HereSince1628]

5. It could mean it's closer to a correction. n/t

[nadinbrzezinski]

6. Yes, the sequester did not have the expected effect

The GOP wanted...boy...wolf.

[1-Old-Man]

7. Yeah, its a good measure of what it measures

And what is it that it measures? Well, in a way it measures the security of the workplace of that 94% of the population that is fully employed, and it is basically very sound.

[cbdo2007]

9. It's meant quite a bit of $$$ for me so far this year.

Can't argue with that logic.

[Johnny2X2X]

10. Yes

In general the DOW reflects stock prices as a whole. With the DOW at a record high and the S&P 500 within 30 points of their alltime record, anyone who has a retirement connected in any way to the stock markets is doing better.

My retirement account lost a lot of value during the Bush Great Recession, it has now recovered and then some. This meqans a lot to my future.

[thelordofhell]

12. Have you learned the lesson??

Now that you've made back your money you lost during the crash.........get the hell out before the next crash...........or are you still gambling your life on the stock market??

[Prism]

11. It could help employment

If more people feel secure or flush enough to retire, that could open vacancies for younger workers. I don't know how major or minor that effect might be, but it's not nothing.