Question

Compare and contrast the Dow Jones Industrial Average (DJIA) and the S&P 500. Decide which one you think is a better barometer for a market portfolio based on one of the following portfolio objectives:

• Growth
• Income
• Capital preservation

Answer 1

The Dow jones has exceeded in growth as compared to the S&P:

The Dow jones has achieved higher growth by boosting the shares of the blue chip companies, The DJIA rose 4.3% compared to 2.2% of the S&P. This has been the largest margin since the DJIA outperformed the S&P, since 2008. The index was on track having reported the results for the latest quarter with a growth of 6.3%. While the S&P 500 is expected to have a growth of 4.7%. This will be the third quarter that the DJIA has reported higher earnings . The Boeing company , which is one of the higher priced stocks is responsible for the gains in the DJIA.

DJIA is a better option for investment than the S&O.