Drury Professor Says Dow Only One Measure Of Economy
The Dow Jones record high close on Tuesday doesn't mean the economy is booming.
Drury University Communications professor Dr. Jonathan Groves says the Dow shouldn't be the only piece of data economists and the public use to gauge the health of the economy.
"Keep in mind, the Dow is but one measure of the stock market, and it is focused on large stocks.
Dr. Groves says the mistake too many media outlets make is referring to the Dow as 'how the market is doing.
Dr. Groves says we should keep in mind it's only 30 stocks from selected industries, and the stocks that make up the Dow have changed over times.
For folks who don't have 401 K plans or don't invest, the numbers don't mean much.