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>Since the Dow Jones Industrials is the most watched large cap index, I'll
>refer to large cap stocks as Dow stocks. Obviously not all large cap stocks
>are in the Dow, but the point is still valid.
Nope. It's not. I'm shocked in fact that the variable composition of the
Dow has been ignored in this post. Makes me wonder what the purpose of
the post was. The Dow drops its losers and replaces them with winners,
it thus is prone to 'inflation' in its own right, not just in relation to the Russell 2000.
Is there somebody out there who has the data, time and interest to plot and
post to the group a graph of the Dow using its definition, say a week before
the day of the crash in 1987, and carrying it out to the present day without
any daily redefinition against the 'official' Dow. That might help put the issue
to rest as to whether it is really of any significance.
Hugh [yes, in Denmark and lurking]
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