We have a pretty strong opinion about the Dow. We think you should ignore it; It doesn’t matter.
It’s no secret that we here at Planet Money think the Dow is a terrible economic indicator. We don’t like that it only looks at thirty companies. We don’t like the way it does its math. We think it does a bad job reflecting the overall economy. Honestly, we’re not sure why everyone is still talking about it.
So today we explain how the Dow is calculated–and why you should ignore it.