The Dow Jones Industrial Average, or the Dow, is an index that tracks 30 of the largest U.S. companies. It gives a quick snapshot of how the economy and stock market are doing.
The cool thing about the Dow is that it includes companies from different industries, so it’s often used as a barometer for the health of the overall economy.
Another thing that’s unique is that the Dow is price-weighted, which means that the higher the stock price of a company, the more it affects the index. It’s different from other indexes like the S&P 500, which weighs companies by market cap.
A lot of people think if the Dow is doing well, the whole market is, but that’s not always the case. There could be sectors or individual stocks not doing as well.
Corrections & Clarifications: We filmed this episode in 2018, back when GE was still in the DOW. In 2019, there are zero original companies remaining in the DOW!
I come for the knowledge and stay for the wit and beauty of Julia and Philips mustache. Great channel. I am 31 and finally have had a stable job that allows me to safe. If only. This channel was in public schools when i was 18yrs old.
Agreed that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, looking for companies to make additions to boost performance
I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Sonya Lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Yes she is expecting in the video. They had a video about being expecting parents. She has the beautiful glow when a woman is expecting. They said at of the video on expecting a baby "here's our three cents."
You guys are amazing. This is just one of the dozens of videos my wife and I watched from you. I just decided randomly to give praise to you because I just thought of the impact you make in our financial life. We are still taking baby steps on our financial education and trying to build strong, long lasting and health habits but having you guys to refer to gives us more confidence that we can go in the right direction steadily. You show us in a simple an fun way that makes look easy what we often learn in more complicated terms. More complicated knowledge makes it harder to stick sometimes because may feel like far from reality in comparison with broken down fun and simple information and comparisons like you guys do. Another big thing about a simple approach is that it makes it easier to align what we both understand as a couple compared to more complicated approach that have lots of interpretation and extrapolation that allows for different views and complex discussions which I believe dilutes the overall learning and aligned understanding. May God bless you and your family always!
I thought I knew what the DOW was, but I thought it was comprised of much more than 30 stocks. Very educational. The part about the market being driven by the actions of other investors rather than technical data was brilliant. Such a great video overall! Many props once again!
I love your channel. As an immigrant student your channel answered so many of my questions about American economy and financial must-dos. Thanks a ton!
I can honestly say that every single segment is so informative, for our lives as adults and younger adults. I'm so glad that I found this channel keep you the great work you two. 😍
I call my bed my incredible Thinking machine. Thats where what I need to do tomorrow is the clearest. Once out of my incredible thinking machine I forget what I need to do.
I had no idea the Dow was so few companies. I thought it was thousands! Seems much less relevant now. I'd like to see a video about insurance. I've heard all kinds of insurances I'm supposed to have, but it's hard to wrap my mind around which are the most important. Love your channel, keep up the great work you're doing!
Hey Cam, I’m an insurance and investments consultant, I could break them down for you in a super easy way. :) I work with low income families, minorities, immigrants so I’ve learned to explain simple Finances 101 😅
A finance advisor can help you plan for your short term and long-term goals, optimize the tax situation, diversify your portfolio, and avoid costly mistakes. I agree with you.A finance advisor can also provide you with objective and unbiased advice, especially when you are facing emotional or stressful situations.They can help you stay on track and avoid making an impulsive decisions that can harm your financial future
What is the correct ticker symbol? I thought it was obvious but it’s confusing, different financial sites have different symbols and when using an app it has additional symbols $ ^ and Xs .
I just realized I've been calling the DOW wrong for all these years. I used to say it like "dough" .... I've mentionned the DOW at least a 100 times during presentations, too. Another great video guys. Thank you doing this - it's really crucial meeting.
That's a first, haha! You don't live in the US if I recall, so it's completely understandable! Here in the states they say it every single day on the news without exception!
@@TwoCentsPBS No I don't so that might be why but it's still pretty embarrassing! I'll make sure to show off my new pronunciation from now on thanks to you!
Now I know what Dow is! My teacher had us writing about the Dow Jones average and I had no idea what Dow was! Now I now what I’m writing about! Thanks two cents!!!
All I know is the Dow was around 1100 when I started my 401k in the 80s. My 401k is currently 1.4 million.( $800k is Roth 401k) Don't know what the Dow was when the Roth IRA began in the late 90s and I started contributing but it's $900k.now.
Oh man, thank you! I learned more in this short video than I was able to grasp with years of struggling to care and hearing too many winded man-splanations (sorry). You're awesome, Two Cents!
*Stock prices are not the economy. Stock prices are, however, stock prices. Buy during panics; sell during bubbles. The numbers are made up, but the money is real.*
The Dow simply adds the stock prices of the companies in the index, and since there are a different number of shares in one company than another, this simple adding method is obscenely stupid. (A small company could have fewer shares out and so simply have a high priced share, having more weight in the Dow Jones index than a more valuable company in the Dow Jones. If you're going to track* an index fund, track the S&P 500, which was constructed more thoughtfully and better represents what is actually going on in the market. *You shouldn't ever care to actually track an index fund by the way, because it will make you think you can time the market. That said, you should always buy an index fund through a low fee investment firm like Vanguard.
I gave myself 5 seconds to figure out what the video would say. And i got it right before watching. Love the animation but man this was oversimplyfied. Let me simplify It farther Recess style. Imagine Bj wants to figure out how strong the 6th graders are at food fight. So after each food fight he counts the top 12 accurate food throwers in the 6th grade. Then he compares his 5th grade friends to the top 12 6th graders to see if they can predict if they can beat the 6th graders in upcoming "food fights". Hope you enjoyed the analogy. And that is what the Dow is.lol
Thank you very much to Two Cents and their team for making such great content! A wonderful future video would be The differences in Charitable Giving: (Charity vs. Philanthropy)
I pay more attention to the S&P500 then I do the dow jones, the dow jones is only 30 publicly traded companies, the S&P 500 is 500 of the largest publicly traded companies. It's a much larger index and is more consistent of what the actual market is doing.
Stocks are for long term investors. You should base your investments on your long term goals, not the ups and downs of the market. Marketing timing is gambling, not investing.
Great explanation and update. This is why I often bring up the S&P 500 index. It is much better as far trying to see how the overall US market is doing.
You guys rock! Very inspiring to watch your channel grow so big in such short time! 😊😊😊 We are working on ours and thank you for being a role model Olson's!!! Rock on!
So if we shouldn’t look so much how bout when it drops like 800 points and you see your 401k dive.? Just continue not to look for another month? Still hard to understand.
So, can someone explain what the heck the Dow is? I hear it mentioned all the time but never really understood what it means.
The Dow Jones Industrial Average, or the Dow, is an index that tracks 30 of the largest U.S. companies. It gives a quick snapshot of how the economy and stock market are doing.
The cool thing about the Dow is that it includes companies from different industries, so it’s often used as a barometer for the health of the overall economy.
But the Dow isn’t perfect. It only includes 30 companies, so it doesn’t give a full picture of the thousands of companies listed in the stock market.
Another thing that’s unique is that the Dow is price-weighted, which means that the higher the stock price of a company, the more it affects the index. It’s different from other indexes like the S&P 500, which weighs companies by market cap.
A lot of people think if the Dow is doing well, the whole market is, but that’s not always the case. There could be sectors or individual stocks not doing as well.
Corrections & Clarifications:
We filmed this episode in 2018, back when GE was still in the DOW. In 2019, there are zero original companies remaining in the DOW!
Is that good or bad
Damn your production line is slow as hell...
Hello, can you explain please the DOT COM
About the lag in publication...maybe they filmed some episodes in anticipation of a maternity leave. ...
@David this episode originally aired on PBS.org and Facebook Watch in 2018. It's an older episode not on UA-cam yet.
This channel is literally what should be taught in schools. Kind of sad that it took 25 years of my life to finally learn what the Dow is.
Better late than never Andrew!
I don't understand why they don't teach these things in school
@@davidmoore5004 They want you to stay as workers
Cuz u never do research lazy fuck
@@aceshadowins1310 Big man in the comments section with the poor grammar & League Of Legends upload. You must be a real hit at parties.
I officially feel like a grown up now! Thanks Two Cents!
I don't think you can graduate to adult until you have the answer to the question, can you fit 12 marshmallows in your mouth?
@@CuthbertNibbles is it miniature?
Absolutely love this channel, I learn more with every video!
I come for the knowledge and stay for the wit and beauty of Julia and Philips mustache. Great channel. I am 31 and finally have had a stable job that allows me to safe. If only. This channel was in public schools when i was 18yrs old.
Agreed that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, looking for companies to make additions to boost performance
I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Glad to have stumbled on this conversation. Please can you leave the info of your investment advisor here? I'm in dire need for one.
Sonya Lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for the lead. I searched her up, and I have sent her an emaiil. I hope she gets back to me soon.
Is she pregnant.?
God bless you guys you are awesome...
Mama ya they had a video about it too
what a great knowledge u got from this video😂😂😂😂
She looks lovely with that glow, I hope they get enough peaceful sleepy nights with the baby. Great channel though 👌
Yes she is expecting in the video. They had a video about being expecting parents. She has the beautiful glow when a woman is expecting. They said at of the video on expecting a baby "here's our three cents."
@Archock Encanto No, she is still pregnant in 2020
You guys always break boring subjects down so clearly but fun too. Thanks for the great content
OMG so pregnant. She's reached the glowing stage. Congrats y'all. Keep up the amazing videos!
*The s&p is a much better gauge with 500 companies and how it is weighted*
I never knew that . thank you .
You guys are amazing. This is just one of the dozens of videos my wife and I watched from you. I just decided randomly to give praise to you because I just thought of the impact you make in our financial life. We are still taking baby steps on our financial education and trying to build strong, long lasting and health habits but having you guys to refer to gives us more confidence that we can go in the right direction steadily. You show us in a simple an fun way that makes look easy what we often learn in more complicated terms. More complicated knowledge makes it harder to stick sometimes because may feel like far from reality in comparison with broken down fun and simple information and comparisons like you guys do. Another big thing about a simple approach is that it makes it easier to align what we both understand as a couple compared to more complicated approach that have lots of interpretation and extrapolation that allows for different views and complex discussions which I believe dilutes the overall learning and aligned understanding. May God bless you and your family always!
I thought I knew what the DOW was, but I thought it was comprised of much more than 30 stocks. Very educational. The part about the market being driven by the actions of other investors rather than technical data was brilliant. Such a great video overall! Many props once again!
Most helpful channel to people like me who just graduated college and are trying to figure out how to adult.
I love your channel. As an immigrant student your channel answered so many of my questions about American economy and financial must-dos.
Thanks a ton!
I love this channel it's like basic economics for the common Folk.
I can honestly say that every single segment is so informative, for our lives as adults and younger adults. I'm so glad that I found this channel keep you the great work you two. 😍
My god... you two are answering questions I didn't know I had!! Love it!
I am so thankful for this channel. It taught me many things that college didn't.
I call my bed my incredible Thinking machine. Thats where what I need to do tomorrow is the clearest. Once out of my incredible thinking machine I forget what I need to do.
this is by far the best "finance for dummies" and I'm loving it.
When she said: "How do you know not to know about the DOW when you don't know about the DOW?" my brain broke. 😂💀
That is actually a very relevant philosophical question, and can be applied to many other important but generally unknown things.
In less than 4 minutes, the Dow Jones Index transitioned from an Unknown Unknown (since I had the wrong idea about it) to a Known Known.
I had no idea the Dow was so few companies. I thought it was thousands! Seems much less relevant now. I'd like to see a video about insurance. I've heard all kinds of insurances I'm supposed to have, but it's hard to wrap my mind around which are the most important. Love your channel, keep up the great work you're doing!
Thanks Cam! We've got episodes coming on Health Insurance and Life Insurance. Stay tuned and thanks for joining us!
Hey Cam, I’m an insurance and investments consultant, I could break them down for you in a super easy way. :)
I work with low income families, minorities, immigrants so I’ve learned to explain simple Finances 101 😅
Massiel Calderon is their anyway I could email you? I’d like to learn more
A way underrated channel that actually teaches and shows you things instead of telling you your wrong do it this way.
The more I learn, the more I feel stupid.
Simply explained. Thank you for not making the explanation complicated!!!
Probably the best critique of the DOW I've ever heard.
Thank you!
Great video! Funny how the media rarely reports the DOW or S&P 500 do well.
A finance advisor can help you plan for your short term and long-term goals, optimize the tax situation, diversify your portfolio, and avoid costly mistakes.
I agree with you.A finance advisor can also provide you with objective and unbiased advice, especially when you are facing emotional or stressful situations.They can help you stay on track and avoid making an impulsive decisions that can harm your financial future
who's here after one of the the greatest DOW plungs in history and only now deciding what to learn about what it is?
What is the correct ticker symbol? I thought it was obvious but it’s confusing, different financial sites have different symbols and when using an app it has additional symbols $ ^ and Xs .
Charming, fun filled education with GREAT presentation....LOVE THIS CHANNEL!
Great video. Now I have a reliable video to show to people who do nothing, but worry about the DOW.
Very informative and entertaining channel, great job you are doing
Thanks so much Ronin!
Who else is here trying to figure all this shit out while the market plunges? March 9, 2020
Guillermo Godoy I guess thats why u r here🤣🤣🤣 very interesting
Addson Omari lmfao yes
Very sensible advice
She's getting so big!
I'm so excited for you guys.
Again, congratulation!
Love this content
How much money does it take to move the Dow 1,000 points? The FED increased the dow by over 10,000 points so how much money are they investing?
Great video! Funny how the media rarely reports when the DOW or S&P 500 do well but sound the sirens when it falls a little bit.
THANKYOU so much for this
I just realized I've been calling the DOW wrong for all these years. I used to say it like "dough" .... I've mentionned the DOW at least a 100 times during presentations, too.
Another great video guys. Thank you doing this - it's really crucial meeting.
Well... The dow measures some company's dough. It's not that far fetched! Hahahahah
That's a first, haha! You don't live in the US if I recall, so it's completely understandable! Here in the states they say it every single day on the news without exception!
@@TwoCentsPBS No I don't so that might be why but it's still pretty embarrassing! I'll make sure to show off my new pronunciation from now on thanks to you!
Love this show!
why would anyone dislike this?
Great video! Keep them coming!!
I just soooo love u guys 💓
AWESOME, BOTH OF YOU!
People ask what the heck is dow, but never how is dow
You guys rock!!!
So much great advice.
Do you have a video on the cost owning a home vs renting and which is better ?
Sure do -- check it out! ua-cam.com/video/ChSpkZ0jVxc/v-deo.html
Can you make a series of more advanced videos explaining options trading and Similar things
Now I know what Dow is! My teacher had us writing about the Dow Jones average and I had no idea what Dow was! Now I now what I’m writing about! Thanks two cents!!!
Wished we learned this in school.
Really informative. Brilliantly presented. Very creative. Thank you for the content ❤
That Homer Simpson doh was everything for me 🤣 lol
I had never even heard of the DOW before this video... maybe cause I'm only 13, Now I know a lot of interesting things about it!
And now you'll be able to tell adults what it actually means, Ruby!
freakin best channel on youtube hands down
I repeat the only channel I trust !! Love you guys so much
All I know is the Dow was around 1100 when I started my 401k in the 80s.
My 401k is currently 1.4 million.( $800k is Roth 401k)
Don't know what the Dow was when the Roth IRA began in the late 90s and I started contributing but it's $900k.now.
This is so clearly explained! Thanks a lot!
Great stuff! Love this channel!!!
Love your channel, keep it up!
Oh man, thank you! I learned more in this short video than I was able to grasp with years of struggling to care and hearing too many winded man-splanations (sorry). You're awesome, Two Cents!
I love your videos! Thanks for the information time and time again!
DOW is a way of life. -Dowist
Beautifully done!
*Stock prices are not the economy. Stock prices are, however, stock prices. Buy during panics; sell during bubbles. The numbers are made up, but the money is real.*
Thanks, valuable information
I neva knew that . 30 company's . I thought it was all us companies . thanks 2 cents .
The Dow simply adds the stock prices of the companies in the index, and since there are a different number of shares in one company than another, this simple adding method is obscenely stupid. (A small company could have fewer shares out and so simply have a high priced share, having more weight in the Dow Jones index than a more valuable company in the Dow Jones. If you're going to track* an index fund, track the S&P 500, which was constructed more thoughtfully and better represents what is actually going on in the market.
*You shouldn't ever care to actually track an index fund by the way, because it will make you think you can time the market. That said, you should always buy an index fund through a low fee investment firm like Vanguard.
Interesting point Dosadoodle, and I agree. The fact that the DOW isn't adjusted for relatively market size is a major weakness in it!
Dosadoodle - Explain the S&P 500, while you’re at it, please. *snork*
Y'all awesome
I usually look at S&P 500 and Baltic Dry Index
Thanks guys for explanation, you are great ;)
Didn't GE get removed from the DOW last year?
Should you invest in the NASDAQ,Dow,or S&P 500 index?
Amazing video! Just subscribed! Bell and everything
You two are awesome. You really explain everything for an average dummy like myself.
Educational and interesting :) i like the chemistry between the hosts :)
Really interesting! Thanks!
Two cents rocks
I predict an episode on the trade offs between disposable and washable diapers ... hope all goes well :)
Haha! Actually, we already made one! ua-cam.com/video/72mPrnnsQ3s/v-deo.html
Now what about nasdaq? by the way thanks for explaining it so simply.
Brief an helpful thx
Love it, thanks!
I gave myself 5 seconds to figure out what the video would say. And i got it right before watching. Love the animation but man this was oversimplyfied. Let me simplify It farther Recess style. Imagine Bj wants to figure out how strong the 6th graders are at food fight. So after each food fight he counts the top 12 accurate food throwers in the 6th grade. Then he compares his 5th grade friends to the top 12 6th graders to see if they can predict if they can beat the 6th graders in upcoming "food fights". Hope you enjoyed the analogy. And that is what the Dow is.lol
Thank you very much to Two Cents and their team for making such great content!
A wonderful future video would be
The differences in Charitable Giving:
(Charity vs. Philanthropy)
Interesting! We're actually coming out with a video about how being richer doesn't mean you're more likely to give!
@@TwoCentsPBS :) Thanks for the reply Two Cents! and that’s awesome I’m looking forward to watching it, great minds think alike!
Wow this was a nice informative Video! Had no idea GE is the only surviving Stock from the original DJI! Great Work y'all!
It's crazy because that was true when we shot the video last year but it's no longer true! GE was dropped recently so there's no more left! : )
@@TwoCentsPBS Good to know! Thank you for the update! Keep cranking out awesome content, love y'all!
I pay more attention to the S&P500 then I do the dow jones, the dow jones is only 30 publicly traded companies, the S&P 500 is 500 of the largest publicly traded companies. It's a much larger index and is more consistent of what the actual market is doing.
You guys are awesome. Can you please make a video on house refinancing?
Short, sharp and sweet! I like your little knowledge nuggets. I make me look great when I repeat it to poeple I know 😊. Thanks Two Cents
Stocks are for long term investors. You should base your investments on your long term goals, not the ups and downs of the market. Marketing timing is gambling, not investing.
Great explanation and update. This is why I often bring up the S&P 500 index. It is much better as far trying to see how the overall US market is doing.
Agreed, same here Matt!
You guys rock! Very inspiring to watch your channel grow so big in such short time! 😊😊😊
We are working on ours and thank you for being a role model Olson's!!!
Rock on!
Thanks for the good video.
Really needed this explanation, thanks.
You're welcome. Thanks for joining us!
Anyone have a good explanation on how the Dow is related to retirement funds & all?
Feel like can't thank you enough guys .!
So if we shouldn’t look so much how bout when it drops like 800 points and you see your 401k dive.? Just continue not to look for another month? Still hard to understand.
A new Two Cents video? You know I am about to watch this!