Stock Indices

Since the DJIA only lists 30 companies, many critics argue that is not an accurate representation of the overall market compared with other more inclusive indexes.

The NASDAQ-100 is a selection of the top valued companies within the NASDAQ, ranked by market capitalization...and is heavily weighted towards the tech sector

The DAX is a German blue-chip stock index made up of the 30 largest German companies making it, essentially, the German equivalent of the Dow Jones Industrial Average.

This index is one of the most frequently followed equity indicators as many traders consider it the best depiction of the U.S. stock market. 

As investors, we can form expectations of the future based on a number of factors and adjust our risk and investment thesis as we learn more and as the analyses below show, IF mean reversion occurs in price and valuations, then our expectations should be for losses over the coming 10 years. The analyses below offer substantial clues.

Founded in 1984, the Russell 2000 is a small-cap index representing about 8% of the total market profit of the Russell 3000 index and is weighted according to market capitalization. The index is broken down as follows:

As can be seen from the above analysis the DJIA moves opposite to the direction of the GOR so it is imperative to watch the GOR as it provides a very reliable indicator of the direction the DJIA is about to embark on.

The Q Ratio, the total price of the market divided by the replacement cost of all its companies, is a popular method of estimating the fair value of the stock market and it illustrates the secular trend toward higher valuations.

...Today’s infographic comes to us from Fisher Investments, and it describes the anatomy of market corrections, while also visualizing much of the data around these common events....

This is a critical point for investors and, while it's difficult to know what's in store for any coming decade, it's not impossible to know. This article explores the accuracy and reliability of 10-year forecasts and offers one of its own.