A few hours ago, ABC Money posted this article which casts worry over the latest drop in the Dow Jones Industrial Average. This 200 point fall, the story goes, suggests we are in a slow-growth economy and the market is due for a correction.
First, the DJIA isn't nearly as important as people think it is. The number is the average stock price of 30 companies--just thirty--adjusted for stock splits. Granted, these are important companies whose performance has wide ranging implications. But they are not everything.
Second, the world is a messy place. This drop may be a correction for past over-optimism or next week may be the correction for today's panic. The latest tick of the market is not automatically indicative of its overall quality.
Each move of the DJIA isn't news worthy. Even big moves. They aren't nothing, but there are more important items to report. What is news worthy is the economy's next big thing, but because we don't know it we have to admit any measures of the quality of out economy--any economy--is subject to tremendous error.