THE MARKET AVERAGES They Should Be Used with Caution


They Should Be Used with Caution

DURING the first years of the great Bull Market rise, many U.S. investors "played the averages." They bought blue-chip stocks used to compute stock averages, notably those in the Dow-Jones average, and made money because it was a blue-chip market in which the leaders rose fastest. But in 1956, playing the averages did not pay off; the blue chips backed and filled all year long. Last week, in the first days of 1957, almost every Wall Street commentator was warning investors to beware the averages this...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!