Comments on: Distortion in the Dow Jones Index

By: kim palma

kim palma — Wed, 28 Jan 2009 20:29:01 +0000

DOW rules! they really continue to show how great and trusted they are, their really good on what they do. Continue the good work.

By: droys

droys — Tue, 27 Jan 2009 14:40:34 +0000

DOW Jones is one of the best for me not only on the quality of their services but also their terrible capability.

By: Corey Rosenbloom

Corey Rosenbloom — Tue, 27 Jan 2009 06:15:24 +0000

Marshal,

Or without any of those stocks. Bianco said they’re keeping them in there for political and PR reasons – for exactly that. “GE, GM, BAC, C, and AA removed from the Dow today. Panic ensues.” That would be a terrible headline.

And thank you for catching that. It reminds me that, like a gremlin, I should not blog after midnight because bad mistakes can happen.

By: MarshalN

MarshalN — Tue, 27 Jan 2009 06:10:45 +0000

GE is also getting very close to $10. Can you imagine the Dow without GE?

BTW, I think you listed FOUR stocks under $10, not three.

By: Corey Rosenbloom

Corey Rosenbloom — Tue, 27 Jan 2009 05:55:44 +0000

That’s right. And no autos either. I’ve always liked the Dow because with 30 carefully selected stocks that represent major industries, it’s equivocated the movement of the S&P, an index of 500 stocks.

However, the Credit Crisis is skewing the reality of the Dow such that a move in oil prices will swing CVX and XOM in tandem while a major move down in financials will now be muted.

By: Gawed

Gawed — Tue, 27 Jan 2009 05:32:12 +0000

very interesting, one of those things that you rarely stop to think about.
so actually right now the DOW is guided by Tech and Energy stocks rather than Finnies uh?