Dow Jones is headed for an unthinkable outcome

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Only twice in the past 13 years, in 2011 and 2016, has the Dow Jones Industrial Average (Dow) outperformed the Nasdaq Composite since the start of the Great Recession in 2008

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The difference between the Nasdaq and the Dow between 2009 and the end of 2021 was a remarkable 892%, while the Dow gained only 314%.

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The Dow, however, is on track to surpass the Nasdaq Composite by a margin of at least 20 percentage points as 2022 draws to a close,

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something that hasn’t happened since the dot-com bubble burst in 2000.

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Let’s talk about why it matters, what it implies for you, why the Dow is outperforming the Nasdaq by such a large margin,

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and the risks of using recency bias to influence portfolio allocation.

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Since the bursting of the dot-com bubble, the Nasdaq Composite has typically outperformed the S&P 500 in years of ferocious bull markets

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