What is the DOW?

The video tutorial explains the Dow Jones Industrial Average, its history, and its role in the economy. It begins by addressing common misconceptions and confusion about the Dow. The tutorial then delves into its origins, created by Charles Dow and Edward Jones, and lists the original 12 companies. It discusses the current structure of the Dow, which now includes 30 companies, and critiques its effectiveness as a market indicator. The video highlights the influence of market perception on the Dow and provides advice on how to interpret its significance, emphasizing that it is just one of many economic indicators.

Who were the key figures behind the creation of the Dow Jones Industrial Average?

• Charles Dow and Edward Jones

• Henry Ford and Thomas Edison

• John D. Rockefeller and Andrew Carnegie

• Warren Buffett and Charlie Munger

What is the primary purpose of the Dow Jones Industrial Average today?

• To track the performance of small businesses in the US

• To serve as a benchmark for the US stock market and specific companies

• To measure the performance of the entire global economy

• To provide a daily update on the US GDP

Why do some people question the Dow's effectiveness as a market indicator?

• It is updated only once a year

• It focuses solely on technology companies

• It only includes 30 companies out of thousands

• It is based on outdated economic models

What is a common psychological effect of the Dow on investors?

• It creates an endless guessing game among investors

• It eliminates market speculation

• It leads to a calm and stable market

• It encourages long-term investment strategies

According to John Prestbo, how often should the average investor check the Dow?

• Weekly

• Daily

• Never

• Once a month or once a quarter