By Merrie Spaeth, KERA 90.1 commentator
Dallas, TX – Last week, the various markets went up and down. The DAK. THE CAC. NASDAQ. Sounds like "Make way for ducklings." This is Marketplace Midday. Maxine is off. I'm Merrie Spaeth and it's Definition Day!
Most of us normal investors can identify with the New York Stock Exchange - that's where some 7000 stocks, including virtually all the blue chips listed. The ultimate "old boys school." It's a snapshot of the value of our savings and our overall economy. But what about all these others?
NASDAQ - National Association of Securities Dealers Automated Quotes. Decades ago, dealers handling stocks not listed on the big board - little companies like Microsoft and Intel - needed a way to advertise prices, so they had paper pink sheets which were published each morning. Computers came along. The quotes were automated.
The AMEX - The American Stock Exchange, started by brokers who couldn't get seats on the big board, now a focus of index options and puts and calls.
Footsie - F.T.S.E, England's Financial Times Stock Exchange. Their version of the New York Stock Exchange.
CAC - France. Their top 40 stocks.
DAK - Germany's.
Nikkei - Japan's.
LIBOR - The London Interbank Offered Rate. The rate European banks lend money to each other to meet reserve requirements.
But here's my point. I think broadcasters should stop regurgitating all these numbers. Times have changed. 25 years ago, the idea was returns were what they call "poorly co-related." That is, Japan might be strong while Europe was weak. But now, it's truly a global investing society. We report these numbers only because we have in the past. On the 24-hour news channels, maybe there's an excuse, but for the rest of us, it eats up precious time we could and should be spending examining more vital economic issues - like what's happening to taxes. We should have the tax complexity index. At least that's one index which would have only gone up!
So - hack the DAK. Toot Toot Tootsie - Bye-Bye Footsie. For Marketplace Midday, I'm Merrie Spaeth.