Happy Birthday, Dow Industrials Average!

Dow Jones Industrial Average is 121 years old today. When it was launched — published is more accurate — its price was $40.94. The holdings in the index were American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas, National Lead, North American, Tennessee Coal & Iron, U.S. Leather, and U.S. Rubber.

The Dow is a throwback, now longer owned by Dow Jones; today, its an S&P property. It is a price-based index that is of dubious value. And yet, it persists through a combination of inertia, success and nostalgia.

 

 

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Chart by Chris Kacher (Moka Investors) via Marketwatch

 

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