by Scott Rosenquist, CFA
The Dow Jones Industrial Average (Dow) is one of the oldest stock market indices in the world dating back to the late 1800’s. The index contains 30 stocks of companies from the United States with most of them well known. The Dow has been approaching the level of 20,000 since late last year, a level it has never reached. It came within a point of that mark just recently. Since the Dow contains only 30 stocks it does not provide the best measure of the broad market. Most institutional investors refer to the Standard & Poor’s 500 when assessing the market.