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Why does the Dow matter?

The Dow Jones industrial average tumbled 250.89 points to a 12 yr low of 7,114.78. What does this mean for those of us who don't play the market. Should we be worried?

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Anonymous

Asked by Anonymous at 5:10 PM on Feb. 23, 2009 in Politics & Current Events

Answers (11)
  • Yep you should be. Ok for instance, many people have money in there on their retirement plans which means those plans are taking a beating. My parents lost alot of money already on their 401ks and other investments. If people arent trading then that means nothing is being bought or traded for goods. It can be anything like oil to just business capitol like Barnes and Noble. So what happens when lets say Barnes and Noble (just an example) plummets? It means the company isnt worth as much as it used to be, and profits might suffer which can lead to job lay offs, stores closing, etc etc. Its a concept of shit rolls downhill. Even if you dont invest if you buy from a company that has investors itll effect you when they lose profits. As circuit city.
    Anonymous

    Answer by Anonymous at 5:17 PM on Feb. 23, 2009

  • You are kidding me right? Let's hit 6900 on Monday and see what happens. When is that next Obama speech? BTW, he was very smart to not address the press today until after the DOW closed today. I'll give him 2 pts. for that one.
    Where's Geithner, anyone see him lately, as long as he is behind Obama and nowhere near a microphone we might survive it all.
    akinbottom2

    Answer by akinbottom2 at 5:21 PM on Feb. 23, 2009

  • He should really just stop talking all together, that would lower a lot of peoples stress levels. Well at least those that are responsible and paying taxes.
    Anonymous

    Answer by Anonymous at 5:53 PM on Feb. 23, 2009

  • Obama talks, the DOW drops, Geithner talks the DOW drops, and yet it is still Bush's fault. I love it.
    Anonymous

    Answer by Anonymous at 5:57 PM on Feb. 23, 2009

  • i always wondered the same thing and thanks for asking cause the first poster answered my question. glad i never had money to invest cause i hate to spend money yet alone loose any. which isn't much to start with.
    melody77

    Answer by melody77 at 6:04 PM on Feb. 23, 2009

  • Yes you should.
    Anonymous

    Answer by Anonymous at 6:35 PM on Feb. 23, 2009

  • Obama talks, the DOW drops, Geithner talks the DOW drops, and yet it is still Bush's fault. I love it.
    ----------
    yeeeee-up.
    its actually a good time to buy/invest as well, because there is some hope that the economy will rebound, and then a good profit will be had. hopefully. wish i knew more about it, but right now i'm working on Baby steps 1 and 2: put aside emergency $$ and debt snowball.
    chickenhobbit

    Answer by chickenhobbit at 6:43 PM on Feb. 23, 2009

  • Yes you should be worried those are indicators of the Nation and they affect everyone.
    We are currently investing a bit more....but not for anything that I cannot afford to lose..and it is for long term. This is going to get a lot worse before it gets better...

    mamakirs

    Answer by mamakirs at 7:30 PM on Feb. 23, 2009

  • simple terms.. if the Dow drops below a certain point. (not sure the numbers) and the unemployment goes to up to 10% (which we aren't far from) and we are in a recession for over 6-8 months.. (which we have) we will no longer be in a recession.. we will be in a depression.. which we aren't that far from.
    xxhazeldovexx

    Answer by xxhazeldovexx at 8:33 PM on Feb. 23, 2009

  • if the Dow drops.. employers may lay off.. increasing the unemployment.... it's like a circle.. (lmao sorry I just thought of that guy from the movie Chuck and Larry). lol. anyways.. if the dow goes down.. people loose jobs.. people loose jobs... unemployment goes up.. if unemployment hits 10% we will be in a depression.
    xxhazeldovexx

    Answer by xxhazeldovexx at 8:35 PM on Feb. 23, 2009

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