Re: Long-term real DJIA. The 3 Fed Chair warnings.

From: Mason A. Clark (masoncNOT_at_THISix.netcom.comQQQ)
Date: 07/29/04 

Date: Thu, 29 Jul 2004 08:13:14 GMT

On Wed, 28 Jul 2004 21:50:37 GMT, William F Hummel <wfhummel@comcast.net> wrote:

>On 27 Jul 2004 22:31:21 -0500,
>edwhamilton@yahoo-dot-com.no-spam.invalid (Ed Hamilton) wrote:
>
>>"the compelling Real DJIA, 1924-now" at
>>http://homepage.mac.com/ttsmyf
>>
>>"the 3 Fed Chair warnings, Real DJIA" at
>>http://homepage.mac.com/ttsmyf/3warnsRD.html
>>
>>I am convinced that the information (basic, centrally important,
>>ignored) in these pages would be VERY beneficial to stockholders, IF
>>brought to their attention.
>
>Graphs like this should use a semi-log ordinate scale. To be taken
>seriously, the method of computing the so-called real DOW should be
>explained. Which measure of price inflation was used, and what was
>the base year for prices?
>
>In any case the DOW is a lousy index because it weights share price
>changes equally whether a company's shares sell at 10 or 100. A
>better measure is a broad index reflecting the market capitalization
>of the stocks rather than their share prices.
>
Granted that the type of graph and methods used may deserve
criticism, is the essential "fact" offered true or false?
(I suspect that it will survive the revisions -- the
qualitative story intact.)

       Mason C

Relevant Pages

  • Re: Long-term real DJIA. The 3 Fed Chair warnings.
    ... >ignored) in these pages would be VERY beneficial to stockholders, ... the method of computing the so-called real DOW should be ... In any case the DOW is a lousy index because it weights share price ... better measure is a broad index reflecting the market capitalization ...
    (sci.econ)
  • Re: Long-term real DJIA. The 3 Fed Chair warnings.
    ... Which measure of price inflation was used, ... >>better measure is a broad index reflecting the market capitalization ... there was a bubble in the 1990s, and that the bubble has burst. ...
    (sci.econ)