Photo: Funny or Die
Most of the time, the Dow Jones Industrial Average and S&P 500 will move together roughly hand-in-hand.However, the gains in the two indices have been diverging noticeably lately. Year-to-date, the Dow is up 8 per cent while the S&P is up around 12 per cent.
Much of the discrepancy can be explained by Apple, which is the driving force in the S&P 500. Apple isn’t even in the Dow. And Apple is up 42 per cent since the beginning of the year.
But this shouldn’t be considered a weakness in the Dow. On the contrary, we’ve argued that Apple’s exclusion from the Dow is exactly what makes the index great.
Photo: Bespoke Investment Group