Charles Dow was the original editor of the Wall Street Journal. He was the originator of Dow
Question:
Charles Dow was the original editor of the Wall Street Journal. He was the originator of “Dow Theory,” which holds that the prices of transportation stocks, such as Heartland Express, can predict changes in the price of industrial stocks, such as ExxonMobil.
a. An article in the Wall Street Journal refers to Dow Theory as the “granddaddy of technical analysis.” Why would Dow Theory be considered technical analysis rather than fundamental analysis?
b. Would an investor be able to earn an aboveaverage return on her stock investments by selling industrial stocks whenever she saw declines in transportation stocks and buying industrial stocks whenever she saw increases in transportation stocks? Briefly explain.
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Step by Step Answer:
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien