An Inteseting Statistical Series

[Enrique Diaz-Alvarez]

Paul Henry Rosenberg wrote:
> 
> 
> My point is that the Dow isn't an objective measure in the first, since
> it's basis changes over time more to suit promotional/ideological
> purposes than for any objective reasons. 

Yes, but any changes to it are announced well in advance, so anybody who
wants to replicate its financial performance can easily do so. The Dow
Jones represents something very real: the approximate value of stock
ownership. The ratio of the weekly wage to the dow jones is very
relevant, but one should compare apples to apples. The easiest way to do
it is to use nominal (rather than inflation-adjusted) wages to the
non-adjusted Dow Jones index (which I wouldn't know how to correct for
inflation, anyway).

Enrique