Observations:
● The Dow has been the best performer.
● The S&P 500 has been the worst performer.
● The major indexes are highly synchronized.
● The Dow has been the best performer.
● The S&P 500 has been the worst performer.
● The major indexes are highly synchronized.
1986 1991 1996 2001 2006
| Daily Close shown in Logarithmic scale. Source of NASDAQ data: Global Financial Data, Inc. |
Analysis (1986 - 2006):
The three indexes tend to move in the same direction. Major tops (T) and bottoms (B) are formed at roughly
the same time. However, the indexes sometimes move at very different speeds. (For example, from 2000
through 2002 all indexes declined but the NASDAQ had the greatest percentage decline.)
Dividends are also an important part of total return which are not included above. The Dow is currently
yielding 2.26%. The S&P 500 dividend is 1.9%. We tabulated the current yield for the largest 100 NASDAQ
stocks at . 9%. The current yield for the largest 100 non-financial NASDAQ stocks is . 27%
Notice that the NASDAQ underperformed the other indexes during 1986-1990 and 2000-2002. It
outperformed them during 1990-2000 and 2002-2006.
The three indexes tend to move in the same direction. Major tops (T) and bottoms (B) are formed at roughly
the same time. However, the indexes sometimes move at very different speeds. (For example, from 2000
through 2002 all indexes declined but the NASDAQ had the greatest percentage decline.)
Dividends are also an important part of total return which are not included above. The Dow is currently
yielding 2.26%. The S&P 500 dividend is 1.9%. We tabulated the current yield for the largest 100 NASDAQ
stocks at . 9%. The current yield for the largest 100 non-financial NASDAQ stocks is . 27%
Notice that the NASDAQ underperformed the other indexes during 1986-1990 and 2000-2002. It
outperformed them during 1990-2000 and 2002-2006.
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6/23/06
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| DJIA, S&P 500 and NASDAQ (1986-2006, excluding dividends) |
NASDAQ (ixic) 9.65% annual return
DJIA (dji) 10.01% annual return
S&P 500 (spx) 9.09% annual return
T
T
T
T
T
T
B
B
B
B
B
B