Why the Dow is a bad indicator of stock market performance

NPR’s Planet Money did a great segment on why the Dow is a terrible indicator of stock market performance.  It is a price index where higher priced stocks count more than lower ones regardless of the company’s market cap.  On top of that it is only 30 companies out of more than 5,000 that are traded.  The only thing it has going for it is that it has been around for a very long time.  Read more here http://www.npr.org/blogs/money/2013/03/05/173515767/the-dow-isnt-really-at-a-record-high-and-it-wouldnt-matter-if-it-were

Or listen to the podcast:  http://www.npr.org/blogs/money/2013/03/12/174139347/episode-443-dont-believe-the-hype