This should automatically disqualify Trump from the White House

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That is worse than colluding with Russia; Trump is a Dow Man

Wall Road is a soulless, ethically bankrupt cesspool however all the things could be forgiven if you can also make cash. But there's one sort of man who merchants won't ever forgive: The Dow Man. 

Quoting the Dow Jones Industrial Common is the mark of a pure novice, somebody who should not be speaking concerning the market in any respect -- a dabbler. If a recruit mentions the Dow in a job interview, finish the decision.

It is a ineffective relic --  a slender, price-weighted index. It tracks 30 corporations, which is no means to take a look at the most important financial system on the planet. They're added and subtracted habitually and just a few are 'industrial'.

All that might be forgiven, I suppose, nevertheless it's mortal sin is worth weighting. Meaning no matter firm has the very best share worth counts for probably the most. So as a result of Goldman Sachs trades at $227, it has a vastly bigger influence on the index than Common Electrical at $25 per share regardless that GE is a a lot greater firm by any measure. Goldman's weight within the index is 6.96%, GE's is zero.80%.

The one cause to create a price-weighted index is as a result of it is easy to do with solely a pencil and paper. And that is precisely why it was invented in 1885 and why it made for an honest index for the subsequent 80 years.

Whilst a option to see the historic longview it is a sham. Simply four corporations stay from the 1975 index, which is the yr it ought to have been deserted for the S&P 500.

That brings us to the President. When he talks concerning the inventory market, sadly, he talks concerning the DJIA.

That the mainstream media mentions the DJIA in any respect is a testomony to how out of contact media is with the actual world. A Dow Man is equally out of contact, and that is a horrible factor for a President to be, not to mention a billionaire New Yorker.

Please, Mr. President, begin utilizing a broad, market-cap weighted index just like the S&P 500 once you speak about 'the inventory market'.

Then perhaps we will speak concerning the metric system.