The Dow vs. Another Index

The Dow Jones Industrial Average is not behaving like the other market indexes today. The reason is IBM.

Interestingly, I have another post that deals with precisely this issue and how it can occur, especially because of IBM.

Here is a link to that post: The Dow, IBM and Benchmarking

I think it is worth a read because having a good understanding of indexing can help calm a lot of stress and also help investors make better long term decisions.

Speaking of long term decisions, I imagine there are a lot of families out there who may be underperforming the S&P 500 index over the last quarter or even this last year. We happen to have hit a time period where that is likely to happen to a well made portfolio. Right now the S&P 500 (which is almost all large US companies) is one of the best performing markets in the world. If you have a well diversified portfolio, meaning you own some small company stocks and international stocks, you will probably be underperforming the S&P 500 this year.

Here is a link to that post: Underperforming the S&P 500? You May Be OK