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.

What was the purpose of creating the Dow Jones Industrial Average?

How many companies currently make up the Dow, and what is their significance?

What are some criticisms regarding the relevance of the Dow in reflecting the US economy?

Why do investors pay attention to the Dow despite its limitations?

What advice did John Prestbo give regarding how often an average investor should check the Dow?