We discuss the Dow stock index and compare it from year to year as if it were a firm standard of measurement.It’s not. For many reasons. Here are two:
The securities that make up the indices change from time to time; some companies are eliminated, others are added.
Secondly, the use of relative terms of the Dow high and lows also don’t include inflationary influences; the value of the dollar used to determine value has changed. (See the Earl J Weinreb NewsHole® comments.)
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