• Treavor Dodsworth

#34 - Who's Dow Jones


If you have seen news recently about the stock market, there is a good chance the Dow was mentioned.


The Dow (aka Dow Jones or Dow Jones Industrial Average or DJIA) commonly refers to a stock market metric that was initially created over 100 years ago. It is frequently looked at to determine the overall health of the stock market. The interesting thing about the Dow is that as of the time of writing this article it only tracks 30 US companies.


These 30 companies tend to be very large and I am by no means saying this is a useless metric but there are thousands of publicly-traded companies in the United States and thousands more outside the United States. Therefore, there is a very large portion of the stock market that this metric is missing.


Interestingly, there is actually a Dow Jones US Total Stock Market Index that represents a much larger segment of the US stock market. For whatever reason, we have habitually used the metric that only includes 30 companies more often.


Hopefully, this short explanation provides a little clarification next time you hear someone mention "the Dow."

Interesting Article(s) or Video(s)


Kitces.com - Analyzing the CARES Act: From Rebate Checks to Small Business Relief for the Coronavirus Pandemic

  • A detailed look at the CARES act. Information is constantly updating. Therefore, please reach out to me before taking any actions based on what this article says (particularly student loan borrowers).


Yahoo Finance - Zoom Technologies Trading Suspended After Ticker Confusion

  • Whoops! People were trying to buy the popular video platform stock Zoom (ticker ZM) but were instead buying a completely different company Zoom Technologies (ticker ZOOM).


Investopedia - Who or What Is Dow Jones?

  • This article explains the history of the index and makes a distinction between the company and the index.


The Balance - What Are the S&P 500, NASDAQ, and Dow Jones?

  • This article discusses some of the more popular market stock metrics at a high level.

Sapulpa Church - COVID Encouragement - Anxiety

  • Full disclosure, this has nothing to do with finance. The video is an excellent concise biblical perspective on anxiety. Hopefully it is helpful during this time!

Thank you for reading! What questions do you have about the recent stimulus bill (CARES Act)?

All written content on this website is for information purposes only. Opinions expressed herein are solely those of Sycomore Financial, unless otherwise specifically cited.  Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. The owner of this website takes great care to thoroughly research the information provided to ensure that it is accurate and current. Nonetheless, the content on this website is not intended to provide tax, legal, accounting, financial, or professional advice, and readers are advised to seek out qualified professionals that provide advice on these issues. All information or ideas provided should be discussed in detail with an advisor, accountant, legal counsel, and/or other pertinent professionals prior to implementation. In addition, the owner cannot guarantee that the information on this website has not been outdated or otherwise rendered incorrect by subsequent new research, legislation, or other changes in law or binding guidance. Neither Sycomore Financial or it's owner shall have any liability or responsibility to any individual or entity with respect to losses or damages caused or alleged to be caused, directly or indirectly, by the information contained on this website. In addition, any advice, articles, or commentary included on this website do not constitute a tax opinion and are not intended or written to be used, nor can they be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. Any mention of an investment product or solution is not a recommendation to buy or sell. ETFs that are mentioned may not accurately reflect the market segment mentioned. Past performance is not a guarantee of future results.

CONTACT

phone: 765-335-6673

SYCOMORE SATURDAY

Weekly email from Treavor on money and life.

Learn more about Treavor's approach.

© SYCOMORE FINANCIAL 2019