Tag Archives: DJIA

Market Myopia

As investors, we necessarily rely on history.  How we analyse that history is particular to each investor – some will look for technical patterns, some at fundamental data, still others will build quantitative models.  But all of us need data, and history is our only source. We may have to rely on history; we don’t Read more […]

Buybacks and the S&P 500® EPS

Buybacks do not increase S&P 500 Index earnings-per-share (EPS), the Dow is a different story. On an issue level, share count reduction (SCR) increases EPS, therefore reducing the P/E and making stocks appear more ‘attractive’. SCR is typically accomplished via buybacks, with the vital statistic being not just how many shares you buy, but how Read more […]

The Dow Jones Industrial Average in 2013? Yeah, that went well…

A steadily improving economy and no small amount of performance-enhancing stimulus from the Fed re-enthused equity investors in 2013, leading the Dow Jones Industrial Average to finish in record territory. Let’s go to the tape: Impressive Climb – The DJIA finished the year at 16,576.66, up 3,472.52 or 26.50%.  That performance leaves us with the Read more […]

A Review of the Financial Markets in 2013

As part of its ongoing review of the financial markets in 2013, S&P Dow Jones Indices recently published four video interviews with senior index analysts that examine the drivers of market performance in 2013 and the news and events that could impact returns in 2014. Market segments discussed during these interviews include: the U.S. equity Read more […]

Eighty-one years later…

Harbouring year-end reviews and final accounts, the last weeks of December are infused with nostalgia. In this seasonal spirit, I’d like to draw your attention to an under-celebrated piece of work, completed in the year that Katharine Hepburn, Cary Grant and Shirley Temple saw their debuts on the silver screen. In 1932, Fred had not Read more […]

Dividends Matter

This morning’s Wall Street Journal brought word that the Dow Jones Industrial Average, which reached nominal all-times highs earlier this month, was in fact still 1% below “the record that counts,” which record is argued to be the all-time high in inflation-adjusted terms.  The analysis uses the price of the Dow Industrials (e.g., last Friday’s Read more […]

You Take My “Breadth” Away

An overview of the market shows that breadth, the number of issues up compared to the number down, is running very strong this year.  Year-to-date (YTD), 451 of the S&P 500 issues are up (47 down), which on an annual basis is the best since 458 issues increased in 2003.  The 2003 number is also Read more […]

The Dow: 3 for 3

This morning (September 10th) S&P Dow Jones Indices announced three deletions and additions for the Dow Jones Industrial Average.  This post explains why we made these changes. The press release is on www.spdji.com The Dow is price weighted – each stock’s weight is the ratio of its price to the total of the prices of Read more […]

Sell in May and go away. You’re sure?

We’re all familiar with that old adage.  The theory says that trading slows during the summer months, markets can be a bit more turbulent and you’re better off closing out your positions, getting to the beach and enjoying your Pimm’s Cup in relative peace. But as my colleague Craig Lazzara pointed in his recent post, Read more […]

25 and Counting for the Dow

The number 25.  Christmas Day.  The atomic number of manganese.  The jersey number typically reserved for a baseball team’s best slugger.  And to date in 2013, the number of new highs hit by the Dow Jones Industrial Average.  Year to date through Friday (July 12) the Dow, ending the session at 15,464.30, has closed at Read more […]