What is the Dow or S&P 500 and why should I care?
Ever heard someone say “Just buy the S&P” or “Smart investors always choose the Dogs of the Dow”.
Have you ever been totally confused about what they are talking about?
It’s ok, I was too when I first started. And that is normal. Everyone has to start from zero if they want to make it to a million.
Very simply, the S & P 500 stands for “Standard and Poor’s 500”. It is an index reflecting the value of the 500 largest companies in the United States. Alternatively, the Dow stands for “The Dow Jones Industrial Average or DJIA”. It is made up of 30 companies listed on the New York Stock Exchange with the highest stock price.
Ok, So what?