OT - The DOW. Does anybody know....greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Does anyone know what the value of the DOW would be today if they didn't swap out the stocks that they did a few weeks ago? Would it still be above 10,000 or would it have fallen below that level? Has anyone here got the know how to figure that out and explain how to the rest of us?
Watch six and keep your...
-- eyes_open (firstname.lastname@example.org), November 04, 1999
G.E. is the only original dow thirty member left,and has been for several years!!No big deal.
-- mr. six figures (email@example.com), November 04, 1999.
While it was announced last month, it took effect Nov 1, i.e. Monday of this week. Without doing the checking, I would guess that it would still be above 10,000.
-- Jerry B (firstname.lastname@example.org), November 04, 1999.
Yes, it would still be well above 10,000, in my quick estimation.
Each of the 30 stocks in the DJIA is weighted equally. Microsoft, despite its having by far the largest market capitalization, carries no more weight than whichever of the 30 stocks has the lowest market cap.
Some quick math indicates that the four new stocks are up about 1 percent collectively since the start of trading on Monday. The four stocks that got the boot are roughly even since Monday. So the four stocks that were added have had a negligible positive effect on the Dow since being added at the beginning of the week.
-- Don (email@example.com), November 04, 1999.
Good question. But look at the NASDAQ--no changes and it's way, way high. I've stopped looking, it just makes me nuts.
-- Mara (MaraWayne@aol.com), November 04, 1999.
The Dow is NOT an unweighted index. It is calculated by adding the prices of each of the 30 stocks then applying a divisor. A $1 dollar move in Microsoft impacts the DJI as much as a $1 move in Disney. The problem is that a $1 change in Microsoft is only 1% of its value, while a $1 move in Disney represents 4% of its price. The Dow is, therefore, weighted by price.
Value Line has the only widely-followed unweighted index that is available daily.
-- mike (firstname.lastname@example.org), November 04, 1999.
Saw where someone calculated the "New Dow" as if it had been in place for the past few months -- difference was minimal. Sears and Union Carbide didn't dragged the Dow down as much as, say, HP has, and Micro$oft and Intel haven't given it much more bounce.
-- Mac (email@example.com), November 04, 1999.
Just trying to pay attention. Can't watch it all by myself.
-- eyes_open (firstname.lastname@example.org), November 05, 1999.