I recently started a new series of letters called “Questions You Were Afraid to Ask.” Each month, we will look at a common question that many investors have but feel uncomfortable asking. Because, after all, when it comes to your finances, there’s no such thing as a bad question! In our first letter, we looked at the difference between the Dow, S&P 500, and NASDAQ indices. This month, let’s discuss a related question: Why is the price of the Dow so much higher than the S&P 500? Before we get started, do me a favor. Pick up your phone or go to your computer. Open your internet browser and search for “S&P 500.” The first result will show the current price of the index. Make a note of the number. Next, search for “Dow Jones.” Notice how much higher it is? As in, tens of thousands of dollars...
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