Friday, August 30, 2013

Buy the Dow or the Entire Market



The Dow Jones Industrial Average (the Dow 30) is a portfolio of blue-chip stocks that ought to be of interest to buy-and-hold DIY portfolio managers who seek an easy way to build a portfolio.

I’ve used Value Line as my primary research resource from 1984 until now, primarily supplemented by American Association of Individual Investors (AAII) VectorVest. I strongly and often recommend the three.

Also, I have often recommended that DIY buy-and-hold portfolio managers consider picking and choosing among the Dow 30 stocks or even acquiring all 30—because I think it’s a good bet that the Dow 30 will edge mostly upward for as long as there’s a stock market.

And since the appearance of exchange-traded funds (ETFs) in 1989, I have also recommended buying the Dow 30 in a single security, SPY—or the entire stock market by acquiring VTI


The discount broker I use, TDAmeritrade, is representative of such brokers that advertise commission-free trades for some, many, or all ETFs. See:

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