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Dow Jones Decreases

Dow Jones Industrial Average has gone down, worrying some investors.

The+Dow+Jones+crashed+throughout+January+26th-February+8th%2C+then+rose+back+up.
The Dow Jones crashed throughout January 26th-February 8th, then rose back up.

The Dow Jones crashed throughout January 26th-February 8th, then rose back up.

The Dow Jones crashed throughout January 26th-February 8th, then rose back up.

Annie Waldman, Staff Writer

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The old saying, “don’t put all your eggs in one basket,” is possibly one of the best pieces of advice that moms everywhere tell their children. Not only is this saying so true, it also applies to the stock market. 

Dow Jones Industrial Average is a stock market index that shows how 30 major companies are doing. Some of these companies are Coca-Cola, Disney, AT&T, and Wal-Mart. 

On Feb. 8, the Dow Jones nose-dived 1,033 points after hitting incredibly high numbers two weeks prior. Economics teacher Becky Hoch was a stock broker, so she has firsthand experience with trading. 

“Market corrections are a necessary part of economic cycles, if it only went up we would cause a crash all by ourselves,” Hoch said. 

Market corrections, which are a drop in the stock market, are a natural part of the economy, since it prevents inflation. Inflation can lead to the dollar becoming worth less and prevents consumers from buying many goods. When indexes like Dow Jones go down, it is a natural part of the economy. 

“The Dow Jones Industrial Average is just the values of 30 industrial stocks, it doesn’t count for transportation or the service industry,” Hoch said. “It’s not a good reflection of how the economy really is.”   

Dow Jones has already bounced back up, and as of February 25th it has increased 347.51 points in a day. Since it goes back up easily and is a compilation of 30 companies successes, it is the safest route of investment.  

“Never invest if you are not willing to lose the money,” Hoch said. 

Index funds like the Dow Jones Industrial Average are the stock market’s way of listening to your mother when she says, “don’t put your eggs in one basket.” Who knew that idioms could shape the economy?  

 

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Dow Jones Decreases