The Dow stocks index includes the industrial average of the 30 large cap American stocks. Dow stocks are usually seen as the reflection of the progress of the overall American economy. However, the Dow Index has become unpredictable and bouncy of late, and there is not just one person who holds this opinion to be true. A number of people who have invested here are now regretting their decisions.

This unpredictable nature is characteristic of any stock exchange, but stocks have become less dependable sine the global financial crisis hit in 2008. If we have a look at the Dow index, we will find that in February 2010, the index was moving close to 9,400 with a downward bias. However, the index took an abrupt turn and started moving upwards, and within three months, it crossed the 11,000 mark. Soon after, it declined sharply, and stock prices again started moving downwards. Turbulence in stock indices at such a large scale is alarming in itself.

Now, people believed that the upward move in February was the entry of the index into the revival mode. However, the index plunged sharply, and people who were overly optimistic lost their money. Now, the index has become stagnant with no major movements on either side. This means that those who have lost their money in May are not going to recover it anytime in the near future.

Moreover, experts say that most of the Dow stocks are overvalued, and that a 10 to 15% correction is expected in the near future. This correction can come out as a loss to those who have invested in such stocks currently. Oliver is calling for a much larger correction.

All this indicates that investing in Dow stocks can be a fatal move. When the global economy is still fighting against the ghosts of the economic recession, the intelligent thing to do would be to stay away from stocks and wait for the right moment. There is no point investing in stocks when so many fatal variables are part and parcel of the Dow stocks index.

Entry and exit are very important if you want to make money in Dow stocks, and the current time is all about exiting and pulling your money out of the stock markets. Overvalued stocks may look fascinating because of the way their price is increasing, but this can be a ploy.

Beware of insider trading and other fraudulent activities carried by the corporate houses. Prevention is the best cure, and this holds true in the current scenario regarding Dow stocks.