Remember when the Bee Gees’ “Stayin’ Alive” was the biggest hit on the radio? If so, you were at the last time the Dow Jones Industrial Average had a nine-day losing streak, which was reached on Tuesday.
The only exchange-traded fund that tracks the oldest stock market index, the… SPDR Dow Jones Industrial Average ETF (DIA)It fell another 2.6% on Wednesday on inflation fears, extending the index’s longest streak of consecutive losses since 1978.
Several factors contributed to the economic contraction in December.
In the immediate rear view, there is a significant waiting period after the election. For the month ending December 5, the beginning of the Dow’s nearly 47-year losing streak, the DIA jumped nearly 7%. This strong short-term performance, which represents nearly a third of the full year’s gains so far, may seem overdone to many investors who tend to lock in gains by selling stocks ahead of an uncertain new year.
The Fed’s revised summary of economic expectations, or dot chart, expects two interest rate cuts next year, down from the three expected in September, while inflation estimates have been revised higher.
Looking ahead, in addition to expectations of a slower Fed interest rate policy, the policies of the incoming Trump administration, including potential tariffs and tax cuts, have exacerbated inflation concerns.
the Dow Jones Industrial Average (DJIA) It is a stock market index that tracks the performance of 30 large publicly traded companies in the United States. These companies span various industries, excluding transportation and utilities, providing a snapshot of the overall health of the U.S. economy.
Unlike other indices, the Dow Jones Industrial Average is price-weighted, meaning that companies with higher stock prices have a greater influence on the index’s movements. It is often used as a benchmark for market performance and investor sentiment.
The DIA ETF is designed to mirror the performance of the DJIA. By purchasing DIA shares, investors effectively own a portfolio representing the 30 stocks in the DJIA index. This allows investors to gain insight into DJIA’s overall performance without having to buy each stock individually.
DIA is designed to provide liquidity and ease of trading, making it a popular choice for both long-term investors and short-term traders. In addition, the DIA ETF pays dividends, passing through dividend income from the stocks it holds. This makes it an effective way for investors to participate in the performance of the Dow Jones Index while taking advantage of the income potential.
https://media.zenfs.com/en/indexuniverse.com/06d0d9db2723fbedbc443359a9a99025
Source link