![]() ![]() For example, if an index made 28% last year, compared to your portfolio which made 12%, your portfolio underperformed relative to the benchmark S&P 500®.Ģ Correlation is a statistical measure of how two variables move in relation to each other. Relative returns are returns compared to a benchmark. Hypothetically, if your portfolio returned 12% last year, this should be your real return. There are two kinds of secular trends:ġ Real returns are what you actually make. History shows that the equity market enters long periods of high returns, followed by lengthy periods of lower ones. Guggenheim Investments is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, and their respective affiliates do not sponsor, endorse, sell, or promote investment products based on the Dow Jones Industrial Average, and none of such parties make any representation regarding the advisability of investing in such products nor do they have any liability for any errors, omissions, or interruptions of the Dow Jones Industrial Average. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) DJIA®, The Dow®, Dow Jones®, and Dow Jones Industrial Average are trademarks of Dow Jones Trademark Holdings LLC (“Dow Jones”) and these trademarks have been licensed for use by SPDJI. The “Dow Jones Industrial Average” is a product of S&P Dow Jones Indices LLC (“SPDJI”). Performance displayed represents past performance, which is no guarantee of future results. For this analysis, we considered the end of a bull market when the index drops below its peak and stays there for a significant period of time. Bull and bear markets illustrated are long-term secular periods, and do not necessarily indicate all bull or bear market periods, which may differ based on methodology utilized. Logarithmic graph of the Dow Jones Industrial Average from through. Cumulative returns are calculated by Guggenheim Investments. It's a joint venture between S&P Global, the controlling member, and the CME Group.Source: Graph created by Guggenheim Investments using data from. In 2012, the Dow Jones Indexes were bought by S&P Dow Jones Indices LLC. The index was created by Charles Dow, the founder of the Wall Street Journal in 1896 to serve as a proxy for the broader US economy.The value of the index is the sum of the price of one share of stock for each component company divided by a factor, which changes whenever one of the component stocks has a stock split or stock dividend, so as to generate a consistent value for the index.It is the second-oldest US market index after the Dow Jones Transportation Average. The DJIA is a price-weighted index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and the Nasdaq. The Dow Jones Industrial Average (DJIA), or simply known as “Dow”, is a widely-watched benchmark index in the US for blue chip stocks. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified. ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). This content is authored by an external agency. It's a joint venture between S&P Global, the controlling member, and the CME Group. Read More The Dow Jones Industrial Average (DJIA), or simply known as “Dow”, is a widely-watched benchmark index in the US for blue chip stocks. The DJIA is a price-weighted index that tracks 30 large, publicly-owned compa. ![]()
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