The Dow’s breaking through the 20,000 mark on Wednesday was the latest benchmark in what has been a record-setting upward push for the stock market.
But local financial analysts say that isn’t the only number investors should be watching.
Dan Holzrichter of Baird Private Wealth Management in Sioux City says 20,000 makes a nice round number for news media to draw attention to:
OC……..something to watch. :17
Holzrichter says the Standard & Poor’s 500 index actually carries more weight with most investors than the 30 stocks making up the Dow Jones average:
OC………..focus on. ;14
And Holzrichter says watching the Dow with its daily rises and falls can sometimes make an investor a little nervous:
OC…….because that’s what it does. ;18
The Dow only needed 42 trading sessions to go from 19,000 to 20,000.
Holzrichter says the higher the Dow average goes, the smaller the daily percentage gain or loss:
OC………….five percent. :12
Holzrichter says the Dow can also be politically driven for some investors.
Prior to November’s presidential election, analysts were divided on if a Donald Trump victory would cause a sharp rise of fall in the Dow Jones average.
As of the end of trading Thursday, it’s had two straight days of record highs.