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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket. -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (1612)	2/28/2000 11:17:00 AM
From: Jon Matz	Respond to of 2103

Jim I've lost track of your posts that detail the reasons for the divergence between the Dow Index and the component stocks. I've just completed a study of the Dow Jones Industrials and the math doesn't work out. Perhaps you can see something I missed. The Dow is down by 16% off the peak according to the index. My study shows the following. Note every single one of the 30 stocks are down from their peak by the following percentages. 5-10% = 2 Stocks 11-15%= 0 16-20%= 4 20-25%= 7 26-30%= 7 31-35%= 5 36-40%= 3 41-45%= 2 It is quite easy to see that the "average" is down over 25%, but the index "says" 16%. I thought that market cap might be playing a major role so I decided to check the average decline of those BIG companies in the index that have a market cap 100 Billion and above. There are a total of 16 companies with market caps 100 Billion plus. The experiment should have showed an average decline at least a little below 16% to adjust for the total average of over 25%, at least I thought so. But the average decline of those biggies is 24%. What the heck?????