THE MARKET AVERAGES
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...
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