Description
The daily reporting of stock market movements (particularly when markets are falling) can be confusing to most people, particularly when the focus has been on the rise of the Dow Jones since 2016. This education-focused article explains as simply as possible what these results mean and how they might relate to your readers’ investments.
Introduction
Investors who pay attention to the finance segment of the daily news may gaze in awe at the performance of the US share market over recent years. Even taking the more recent volatility into account, the Dow Jones Industrial Average has displayed a pattern of remarkable growth since its low point of 15,973 in February 2016. Meanwhile, the Australian All Ordinaries Index has yet to return to the height it enjoyed before the Global Financial Crisis at 6779.1 points.
This begs two questions: what are these indices? And what do their movements tell us about our investments?
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