The Stock Nerd

So, this week I was talking to my dad about how the Dow Jones Industrial has lost 40% of it’s value in a year and he promptly asked how he could invest in the Dow Jones in the near future. I told him that there are brokers that will invest in the individual stocks that make up the Dow Jones or he could even do it himself if he really wanted to, but he was still lost. He said he didn’t want to invest in individual stocks, only the Dow Jones. A large proportion of people who generally aren’t market proactive and don’t care for the market don’t realize that the Dow Jones is actually a collection of 30 stocks that represent 30 different large industries to predict movement as a whole. That’s what it is, an index which indicates market direction (and it does a good job at this obviously due to the selection of stocks). If you’re just getting into understanding how the stock market (and now IS a good time to understand the stock market) works, check out one of my previous post: What are the stock market indexes?

In the past weeks, trillions of dollars of wealth has been lost in the stock market and it’s really important for us to know why. I will be including more articles with basic information on the stock market every so often to help heighten understanding of the stock market during this tough time. The most important thing to remember is, don’t panic.

That’s all for now.

- Stock Nerd

Bookmark to: