Now raising intellectual capital
Jack Healy’s story in The New York Times about the Dow getting closer and closer to the magical 10,000 mark is OK, but it contains few surprises. But I really was blown away by the chart that shows the perfomance of Dow component stocks since March 29, 1999–when the index crossed 10,000 for the first time.
The chart, which includes a number of stocks that are no longer part of the Dow–such as AIG, Citigroup and Eastman Kodak–is interesting because more component stocks have lost ground over the past 10 years than posted gains.
The list of losers that are still part of the Dow include a broad swath of US industries. Some of the stocks that have lost ground in the decade since the Dow first hit 10,000 include American Express, Walt Disney, Cisco, JPMorgan Chase, Microsoft and Home Depot.
This long list of illustrious losers should be a sober reminder for the bulls prediciting an ecomonic rebound simply because the stock market is rising.