Tag Archives: Dow Jones

Investors Look to Dow Transports for Growth and Dividends

With the media focused on Dow 17,000, we often overlook some promising investing opportunities in the Dow Transports. The Dow Jones Transportation Average was the first listing in 1884. It had nine railroad stocks in the index. The Dow Jones Industrial Average came later in 1896. Throughout the late 1800s and early 1900s, rail transportation dominated the way goods were shipped throughout the country. At one point in 1916, the US had 254,000 railroad lines. From then on railroads had to compete with trucks and air transportation and saw a loss of revenue and jobs. However, we are in the midst of a new revival of rail transportation with both ton miles shipped and net proceeds setting new records.Continue Reading

Market Update May 15, 2014

So far 2014 has proved to be quite frustrating and confusing. We ended 2013 on and upbeat note with the Dow and S & P making new all time highs. At the time only 16% of investors were bearish on the market. In December 2013, then Chairman, Ben Bernanke, of the US Federal Reserve started to taper bond purchases by $10 billion per month.Continue Reading

Why there is Falling Unemployment and a Drop in the Dow?

On Friday, the Labor Department reported an increase of 288,000 new jobs. The unemployment rate fell to 6.3%, the lowest in 5 ½ years. At the outset this was good news for the market, but as the day wore on, the Dow Jones Averages started to fade and ended down 45.98 points. What should have been a rip roaring rally fizzled. Some blamed the crisis in Ukraine.Continue Reading

Investing for Q4 2013

In 2009, Ben Bernanke, Chairman of the US Federal Reserve embarked on an unprecedented program that to date has provide $3 trillion in stimulus to the US economy. The Fed did this by buying treasury securities and mortgage backed securities. The money was credited to bank balance sheets, providing them with boat- loads of cash to use, supposedly for lending to stimulate growth. However, this did not happen. The banks kept most of the money and speculated in the markets driving the Dow Jones Industrial Average to new all time highs. If the banks had been forced to lend the money we would have a much different economy.Continue Reading