Stochastics and the RSI are still Neutral to Bullish indicating that sideways to higher prices are possible near term. The Dow Jones Industrial Average (.DJI), also called the DJIA, Industrial Average, the Dow Jones, the Dow Jones Industrial, the Dow 30, the DJIA, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. It is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market.
To see the long flat periods adjusted for inflation, see 100 Years of Inflation-Adjusted Stock Market History Warning: not for the faint of heart! As discussed in Dow 25-Year Moving Average History , the market has very rarely fallen below its 25-year moving average. Comparing Housing vs. Stock Market Growth : shows long-term stock market growth including reinvested dividends (the chart above excludes dividends).
But Dow Jones has its own special place and importance in the eyes of the whole world. The Dow Jones Industrial Average has persisted for a century precisely because it symbolizes not merely 30 blue chip stocks, but the general health of the economy. If Dow were alive today, surely he would have been proud to see his average commanding attention daily throughout the world.
Other averages may be mathematically more sophisticated, but the Dow has been tended with great care for a hundred years now. This fund has gained 19.32 percent per year over the past ten years and gained over 34 percent in 2009. This fund invests primarily in Real Estate Investment Trusts also known by the acronym REITS. Looking at the fund picks from Fidelity for real estate mutual funds only two funds show up. Guess what they are both Fidelity funds!
The 500 stocks in the S&P, for example, can be purchased in one trade simply by buying the SPDR S&P 500 ETF Trust” (symbol SPY). The 30 blue chip stocks in the Dow are indexed in the SPDR Dow Jones Industrial Average ETF” (symbol DIA). But just keep in mind that if you focus on one sector, such as a Gold ETF (symbol GLD), you will not have the benefit of true diversification. One example: Charles Schwab’s ETF OneSource account is commission-free to trade some specific ETFs online. You could find yourself putting $1000 into your account endlessly every month because the ETF keeps going lower and lower until you lose it all.