when is dow jones going to boot gm for GOOG, citi for Cisco

Discussion in 'Trading' started by BlueStreek, Feb 13, 2009.

  1. alcoa for apple

    tech is actually something that US leads in, technical innovation.

    citi and bank america are probably dead companies for atleast 3 years if not longer, tech has some life.

    Dow kicked aig out in a heartbeat.....what gives...these stock have been below 5 for too long! make the switch, at least with 2 of them!
  2. LeeD


    Not soon. The list of index constituents involves some discretion.... and no index provider wants fast rotation... especially when members leaving the index are the largest customers
  3. Cisco would be a reasonable addition.

    AAPL and GOOG are too expensive and volatile for a price-weighted index like the Dow. Volatility would be crazy. GOOG's move from Jan 20 to Feb 9 would have moved the Dow by 700 points. GOOG's 90-point jump on April 18, 2008 would have raised the Dow by over 600 points.

    But face it, does anyone except Dow Jones publications really care what the Dow does from day to day? It's a price-weighted 30-stock index, hardly representative of the market.
  4. The DOW idiots have done terribly in replacing component companies in the last 10 years. Their biggest mistake was bringing in MSFT and INTC and kicking out 2 industrial companies in about '99 which cost the index a good number of points (maybe 500-700?.) CSCO is a possibility, but I agree with the other poster that GOOG and AAPL are longshots.
  5. I read recently DJ has absolutely no intentions to remove GM
  6. They'll put in Google & Cisco when they're topping and ready to make multi-year lows, which is what the Dow index people have done with previous substitutions. They "buy high" and "sell low".
  7. The Dow Jones Industrial Average is an anachronism in an age when physical goods industries account for such a small percentage of the economies of most Western nations. I know some think we should return to our manufacturing roots, but that's the past. I'd bet a lot of people in the 19th century didn't like new-fangled "industry" and thought the economy should go back to it's agricultural roots.

    In this day and age, "doing stuff" (service) is more valuable than "making stuff" (manufacturing) which is more valuable than "growing stuff" (agriculture).

    Perhaps it's time to retire the Dow?
  8. They should throw in some goldminers, let gold skyrocket and DOW would be at 20000 in no time draging all of the world's stockmarket's out of their slump in no time.

    This stuff is so basic why didnt Paulson think of it boggles my mind.
  9. Lucrum


    Maybe after bankruptcy?
  10. I see. So writing some bullshit report to con idiots out of their money is more important than growing corn or animals to feed billions of people.

    I don't think you'd be saying this if you ever had to go hungry for even 1 day. Who knows, I hope it won't be anytime soon.

    #10     Feb 14, 2009