dow jones industrial average

Dogs of the Dow 2022

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Dogs of the Dow 2022 1

. I first heard of the Dogs of the Dow strategy back when Motley Fool was just becoming famous, largely based on the out-sized success of their investment in AOL as the Internet Bubble continued to swell. (Whew! There’s a lot of investing history, and investing lessons in that one sentence.) The Foolish Four was a supposed improvement on the Dogs of the Dow strategy. I never invested that way, and it turns out to have been a good move. As the year rolls over to 2022, there come the obligatory articles about which stocks are the 2022 Dogs of the Dow, and whether the Dogs of the Dow is a good investment strategy. So, I thought we’d take a quick look. What Is the Dogs of the Dow Strategy? The Dogs of the Dow is an investment strategy where an investor invests in the 10 stocks in the Dow Jones Industrial Average that have the highest dividend yield as of 12/31 on the first trading day of the year in equal amounts and then holds the stocks for the full year before repeating the process. The idea (which used to be true, but is less so these days) is …

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What Do Stock Market Records Mean?

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Both the Dow Jones Industrial Average and the S&P 500 closed at all-time highs on Friday. It seems that every week brings new record-breaking highs for the Dow and the SP500. The question is, what do all of these record highs mean. Should an average investor do anything when the stock market hits a new record? What Is a Stock Market Record High? Let’s start with the basics. While individual stocks on the stock market are going up and down based on their own merit, and supply and demand, the stock market is often reported as a single thing. What financial reporters and analysts mean when they say “the stock market,” is one of the indexes of the markets. There are numerous indexes, but the most widely touted are the Dow Jones Industrial Average and the Standard and Poors 500 index. When people say the stock market broke a record high, they mean that one (or both) of those indexes is higher than it has ever been. (You can’t invest directly in the indexes, which are just academic, mathematical statistics, but you can get close using index funds.) In a way, higher records are inevitable. Even if the intrinsic value …

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Stock Market Records Is It Time to Buy

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Nothing gets the financial press in tizzy quite like a run of “up days” for the stock market. And, nothing gets the mainstream media interested in the financial media’s excitement like a new RECORD! Dow Jones Record High The Dow Jones Industrial Average has notched some record high closes lately. The S&P 500 Index isn’t far behind, within striking distance of its record high as well. So, what do these new stock market records mean for smart investors? First, the recent stock market records are a lesson to be learned for long-term investors such as retirement investors. When the market looked terrifying in  2008 many people sold off stocks in their 401k plans and other retirement savings, often after much of the damage had already been done. That was a foolish strategy then, but now, five years later, those investors are officially the fools. You were better off to have just stayed put. Harsh? Maybe, but if you are investing for retirement or other long-term horizons, this is a critical lesson to learn. In a recent discussion someone said to me that he was sure he did better by getting out when things were bad and getting back in now …

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2011 Stock Market Update Q3

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The third quarter just closed on September 30th and it was not a pretty sight for short-term investors. The S&P 500 closed at 1,131.42 which is down 14 percent for the third-quarter. It started the year by opening on January 3rd (the 1st and 2nd were Saturday and Sunday, respectively) at 1,257.62.  That is a drop of a little over 10 percent year to date. The Dow Jones Industrial Average is off 5.74 percent year to date. The stock market took a huge dive starting July 21st and has never pulled itself back up. For those of you looking for the culprit, let me help you out. The debt ceiling deal was reached at the end of July, which means the 21st was pretty much the height of the shenanigans. The markets have had no truly good news since to pull themselves back up by. Outlook for 2011 4th Quarter Stock Market Don’t expect the news cycle to save the stock market during the fourth quarter of 2011. In the 4th quarter, we’ll see increasingly competitive rhetoric building in the Republican Presidential primary, the product of the debt ceiling committee, which most are projecting will fail, and the start of …

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Stocks In Dow Jones Industrial Average and Dow Jones Transportation Average

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Dow Jones Indexes publishes lot of averages and indexes. They are best known for the Dow Jones Industrial Average and the Down Jones Transportation Average. Personal financial planning on FinanceGourmet.com The Dow Jones Industrial Average is featured on most stock market news reports and makes an appearance on the nightly news. It is often referred to as just The Dow, or Dow Jones. The Dow Jones Index is composed of the stocks of 30 big U.S. companies which are supposed to represent the majority of the US economy and industry, with the exception of the transportation industry; they have their own index. Dow Jones Industrial Average Components The Companies In the Dow Jones Industrial Average 3M Company (MMM) Alcoa Inc (AA) American Express (AXP) AT&T (T) Bank of America (BAC) Boeing (BA) Caterpillar (CAT) Chevron (CVX) Cisco (CSCO) Coca-Cola (KO) du Pont (DD) Exxon Mobile (XOM) General Electric (GE) Hewlett-Packard (HPQ) Home Depot (HD) Intel (INTC) IBM (IBM) Johnson & Johnson (JNJ) JPMorgan Chase (JPM) Kraft Foods (KFT) McDonald’s Corp (MCD) Merck & Co (MRK) Microsoft (MSFT) Pfizer (PFE) Procter & Gamble (PG) Travelers Companies (TRV) United Technologies Corporation (UTX) Verizon Communications (VZ) Wal-Mart Stores Inc. (WMT) Walt Disney Company (DIS) …

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