Why Dow isn't really the stock market
To measure the entire US market, many academics and investors prefer CRSP US Total Market Index, which is trailing both Dow and S&P 500
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DESPITE a few rocky days recently, the US stock market is having a great year. But exactly how great depends on what you mean by "the stock market".
Are you talking about the Dow Jones Industrial Average, the oldest and best-known measuring stick for the American stock market? If so, that one has risen more than 18 per cent over the last 12 months, a spectacular return.
Or are you referring to the Standard & Poor's 500-stock index, the benchmark for large companies used by many stock professionals? If so, that market has been far less impressive, with a gain in the last 12 months of a little over 12 per cent.
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