SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: John Chen who wrote (189876)3/10/2009 4:07:07 PM
From: geode00Respond to of 306849
 
How to improve the DOW, simply drop companies.

==========
"Dropping GM From The Dow 30?

Posted by: David Kiley on March 10

There is buzz on Wall Street that General Motors may soon be dropped from the Dow Jones Industrial Average, made up of 30 bellwether companies. Citi is also rumored to be on the Dow block.

I get why Dow Jones would be considering it. Should the extreme woes of two companies, with problems that are out of proportion to the other listed companies, drag down the whole stock market index?

Are their problems so horrific that they distort the usefulness of the index to track the broader market?

On the other hand, if both these companies are both so intertwined throught the U.S. and gloal economy, and are too big to fail, shouldn’t they be part of a true market index even if they are trading at near a buck a share?"