Consider two widely quoted US stock market indexes

Subject: Business    / Finance
Question

1. Consider two widely quoted US stock market indexes: the Dow Jones IndustrialAverage (DJIA) and the S&P 500. In March 2012, the DJIA was down 0.31% for the monthwhile the S&P 500 was up 0.42% for the month. Explain what may account for the difference inthe performance of the two indexes and briefly discuss what these numbers tell you about thestate of the US economy

2. Find and read the article: “Buttonwood: Bubbles are rarer than you think” TheEconomist, 11 February 2017. Provide a brief (one-page maximum) discussion of how this article relates to the Efficient Markets Hypothesis. Use the tools and terminology learned in this course wherever possible.

Link below is the article.

http://www.economist.com/news/business-and-finance/21716578-and-very-hard-recognise-until-it-too-late-bubbles-are-rarer-you-think