Dead Dogs of the Dow

October 1, 2009


No surprise: Firms dropped by the Dow Jones industrial average tend to underperform. But so do firms added by the Dow.


With 

BILL SINGER: Bill Singer, a securities attorney and shareholder at the firm Stark & Stark, says the changes in the Dow over 20 years seem somewhat ominous, as America moves further away from actual industrial production into services and goods. "Interesting, the U.S. concept of a Dow Jones "industrial" went from Bethlehem Steel to Bank of America to Kraft--from metals to dollars to cheese," he says. "We turned our strength in natural resources into devalued dollars and now into Cheez Whiz. Well, at least we can eat Cheez Whiz when we're broke."

http://www.forbes.com/2009/09/30/dead-dogs-dow-intelligent-investing-index.html

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