Just bought a large block of T. Stocks that are removed from the DOW have done very well six to 12 months later.
So, this sounds like speculating to me.
Can you provide some statistics to make it seem less speculative?
Just curious.
Those that survive, anyway. Sears, General Motors, AIG, are others that didn't fare so well.Stocks that are removed from the DOW have done very well six to 12 months later.
Those that survive, anyway. Sears, General Motors, AIG, are others that didn't fare so well.
I have both AT&T and Apple, so for me I guess it's a wash. I'm just gonna sit and do nothing. Maybe buy a bit more on the lows, sell a bit on the highs.
Has anyone compared the performance of all the stocks that are eliminated from the Dow with the Dow index? That would be a more compelling case.Good point. Those were tossed because of share price. T is being tossed because with VZ in the index their weighting is now too high.
AAPL was added because of V stock split decreased the tech component of the DOW (price weighted).
An article just crossed, that follows my thought process concerning performance after removal: AT&T shareholders should rejoice at Dow removal
Alcoa is up 75 percent since that exit. Hewlett-Packard, replaced by Visa in 2013, is up almost 60 percent since then. Citigroup, replaced by Travelers in the wake of the financial crisis in 2009, is up 58 percent.
Has anyone compared the performance of all the stocks that are eliminated from the Dow with the Dow index? That would be a more compelling case.
The DOW is just noise. <snip> it's just a number that the media likes to mention and means almost nothing. Often it moves more abruptly than the board indexes, so again, the media likes to use it in headlines.
I know- at the level it is now, a 200-point drop is a tiny % but the headline is, "The Dow tumbled 200 points..."
THIS is one of the reasons I absolutely HATE watching the news.
...
It's all so very annoying.
"I get the news I need on the weather report"
- Paul Simon, "The Only Living Boy In New York"
Just bought a large block of T. Stocks that are removed from the DOW have done very well six to 12 months later.
How much did you make on the Apple puts? It is 114 today. Did you buy back in?