The Dow made another record high close yesterday.
Or did it? Remember, the Dow is price weighted, which makes
its price behavior a bit odd — at least when compared to market cap weighted indices like the S&P
or the Nazz.
Bob Bronson makes the following observation regarding the Dow’s record highs:
"While the DJIA 30 stock index closed on 11/15/06 at 4.5%
above its all time high, only two components made record highs, with four more
less than 3% below their all-time highs. 17 (57%) of the 30 made their all-time
highs more than five years ago, and, on average, they’re 27% (median 30%) below
their individual all-time highs ."
Here are the details:
Click for larger table display
Tracking the Dow accurately
Robert E. Bronson, III
Bronson Capital Markets Research
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