Stock market (DOW) around 8000

[coffeeman]

I'm not a stock guy, but I was wondering. One morning a few weeks ago as market was rising I realized the TV guys always have to compare DOW to last month, year etc. Then it hit me, wasn't AIG and GM part of the average? If so, wouldn't things look worse if GM and AIG were still in averages at 0?

Am I on right track or is there some kind of adjustment?

Cheers

 

[MikePA]

There are 30 companies in the DJIA. GM was removed on June 8th, 2009 and AIG was removed on Sept 22, 2008.

 

[weldingisfun]

Not to worry, that is the "Change" we voted for back in November.

 

[Charlesaf3]

8000 is still too high. We have real problems that haven't gone away.

 

[Knotbored]

The DOW does a poor job of accomodating dividends, splits and unusual situations like the GM situation. I have been retired for 15 years and obtained about 3/4 of my original retirement investment over those years, but on this months report I have more in stock value now then when I started 15 years ago.
So little is understood about how the stock market works and how secure (or unsecure) various investrments that most of us fear investing and think buying a car or gun is a better investment.
Will DOW go below 8000? maybe
Will it go above 12000 soon? probably
Willl either of those affect anyone that does not sell because they scare out? nope
If your neighbor says your cat looks like a million bucks but it gets run over-you have not lost a million bucks-you just lost a cat!

 

[milkman]

Amazing since the country was doing so well up till 01/20/09.

 

[coffeeman]

The DOW does a poor job of accomodating dividends, splits and unusual situations like the GM situation. I have been retired for 15 years and obtained about 3/4 of my original retirement investment over those years, but on this months report I have more in stock value now then when I started 15 years ago.
So little is understood about how the stock market works and how secure (or unsecure) various investrments that most of us fear investing and think buying a car or gun is a better investment.
Will DOW go below 8000? maybe
Will it go above 12000 soon? probably
Willl either of those affect anyone that does not sell because they scare out? nope
If your neighbor says your cat looks like a million bucks but it gets run over-you have not lost a million bucks-you just lost a cat!

another thing, as a non knowing person

I seem to think there are times; say on a Monday and stock has a dramatic raise. Then on Tuesday the stock folks, on tv, make a big deal of xyz earnings to be released today. The market will raise. Earnings released later and investors are happy. However, the rise is many times lack luster. Sometime I suspect there are folks who get advance info. Thus, as you mention, little is understood; especially by us regular folks who don't spend the time to understand. I think if you can't take time to learn the game, it's a losers game if you invest.

Just some thoughts....Coffeeman