The Market made 16% in 2006.

JEDI

Lifer
Sep 25, 2001
30,160
3,300
126
dow, s+p, nasdaq?

when people say the market made 16% in 2006, which are they referring to?
 

techs

Lifer
Sep 26, 2000
28,561
4
0
Usually they mean the DJIA. The Dow Jones Industrial Average.
The Dow chooses which stocks to include in their average, so they sometimes drop companies which tends to over state the actual gains of the stock market. Also the stock market de-lists companies whose stocks fall to what they consider too low a level. Plus, companies can choose to give a dividend, purchase their own stock, etc which influences how well the DJIA reflects the state of the economy.
Although if you look at the DJIA from 1998 to now, the market has done really poorly since it needs to more than exceed the inflation rate just to stay even, due to the factors I explained above.
You also need to understand that the value of the dollar nosedived. So it gets pretty complicated.