Saturday , 19 September 2020


Constituents In Dow 30 Changing On Monday: Here’s How & Why

In the following table from S&P Dow Jones Indices you can see the changes at a glance:

Dow Jones Indices

…[The re-structuring] is a consequence of the announcement of Apple’s share split in a ratio of 4 to 1 after the market close next Friday…[and will reduce] the weight of the technology sector in the index.

The Dow Jones…is already close to the historical maximum that it reached in February 2020 at 29,583 points. We will have to wait and see how the market reacts to the changes announced when Wall Street opens the session today.

Editor’s Note:  The original article by Admiral Markets has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read.  The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

Related Articles from the munKNEE Vault

1. Comparison of Past & Present Performance of Dow Is Meaningless! Here’s Why

Every time the number of, or specific constituent, companies change in the Dow index any comparison of the new index value with the old index value is impossible to make with any validity whatsoever. It is like comparing the taste of a cocktail of fruits when the number of different fruits and their distinctive flavours – keep changing. Furthermore, because of the application of the ever changing Dow Divisor, we are always comparing a basket of today’s apples with a basket of yesterday’s pears.

2. S&P 500 & Dow 30 Index Performances: Illusion vs. Reality

The Dow Jones Industrial Average is a fabricated number that has little relation to the actual average performance of the stock market as a whole. For sure, it is not industrial in nature, and by no means is it an average. It’s like creating an all-star team of the very best-performing companies and broadcasting to the world that this is the average of all companies out there.

3. Take Note! The Dow 30 Was Injected With Steroids

The Dow 30 is deceptive in what it purports to represent. The manipulation of its performance has been going on since 1928 and it gets further denigrated on September 23rd with a 3 constituent swap which will, in effect, assure that it continues to rise in the long term.

4. The Dow Jones Index is the Greatest of All Ponzi Schemes

I call on the financial community to take a critical look at the Dow Divisor. If it is retained investors will continue to be deceived with every new transition from one phase to another and the greatest of all Ponzi schemes will have major financial consequences for every investor.

5. Beware: The Dow 30’s Performance is Being Manipulated!

The Dow Jones Industrial Average (DJIA) Index – the oldest stock exchange in the U.S. and most influential in the world – consists of 30 companies and has an extremely interesting and distressing history regarding its beginnings, transformation and structural development which has all the trappings of what is commonly referred to as pyramid or Ponzi scheme.

6. What Is the Dow Jones Industrial Average & How Exactly Does It Work?

Since the DJIA only lists 30 companies, many critics argue that is not an accurate representation of the overall market compared with other more inclusive indexes.

7. The S&P 500, Dow & Nasdaq Indexes: What Are the Differences Between Each?

Do you know how to use the different stock indexes? The Dow, NASDAQ and S&P 500 indexes are 3 of the best measurements of trading activity and give investors a clear picture of the overall health of the economy. Each represents a different type of index, calculated and tracked in their own way, reporting real time movements of stock price and market capitalization. I created this infographic to demonstrate the unique features of these indexes and how they can help you along in investing.

8. The 10 Dogs-of-the-Dow Performance for 2019 vs. the 20 Non-Dogs

Below is an updated look at the total return performance of the 10 Dogs of the Dow for 2019 versus the 20 non-Dogs.

9. “Dogs of the Dow” Investment Strategy: Higher Yields & Above Average Stock Price Gains

Dogs of the Dow is an investment strategy that targets the 10 top-yielding stocks in the Dow Jones Industrial Average (DJIA) for investment each year. Investors following this strategy should reap the benefits of higher yields and above-average stock-price gains.

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