In this week’s Barrons, Mike Santoli takes a closer look at the 30 individual Dow Industrial stocks.

A few observations worth noting: The winners were stable, defensive companies, while the losers were financials and the more cyclically sensitive names.  The 2011 winners marked their second consecutive successful year: McDonald’s (MCD), Home Depot (HD) and Kraft Foods (KFT) all did well. The laggards — Bank of America (BAC), Cisco Systems (CSCO), Hewlett-Packard (HPQ) and Alcoa (AA) — were also the laggards in 2010.

The most interesting data point to me was the performance bell curve. Will the fat middle was mostly flat (plus or minus a few %), there were 8 DJIA names out of the Dow 30 either rose or fell 20% or more last year. That is 26.67% whose performance is far away from the market average.

click for larger table; don’t click for bigger table — what, you think I care?


Daredevils of the Dow
Barron’s January 14, 2012

Category: Index/ETFs, Investing

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3 Responses to “2011 Dow Dogs & Daredevils”

  1. reedsch says:

    On a side note…can somebody please straighten me out here?

    Everything I read says that there are supposed to be 12 members on the Federal Reserve Board of Governors. 7 represent the public, which is a majority on the Board: (see: Appointments to the Board)

    However I can only find 5 public members identified on any FRB website:

    It also says there are to be 12 members on the FOMC, but I can see only 10.

    Can anybody fill me in here? I don’t want to jump to conclusions, but from what I can see the public does not currently control a majority of the board. Which would seem to be a violation of their charter.

  2. reedsch says:

    2 new Fed nominees…

    Oh my this looks like an opportune moment to have a public discussion about the Fed’s recent activities, don’t you think? I’ wonder if OWS will be interested?

  3. louiswi says:

    The Republicans are holding up these appointments. That’s pretty much all you need to know.
    Peter Diamond withdrew his nomination to serve on the Federal Reserve Board of Governors. Though he was a recent recipient of a Nobel Prize in economics.
    This is part of a larger confirmation crisis in the Senate: Republicans have blocked 223 of President Obama’s 1,132 executive and judicial appointees—over 20 percent. Republican senators have enforced a strict sixty-vote threshold for most nominations, and sometimes holds are placed on nominees anyhow. This hobbles crucial federal agencies and is yet another successful prong of the Republican war against effective government.