[lbo-talk] where we are

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Tue Aug 24 16:01:28 PDT 2010



> My personal 'macro' measuring stick is the Dow Jones Industrial
> Average. When I left the USA in 2000, it was 11,000.

You might not be aware of this, but the components of the DJIA have changed 6 times since you left. It looked like this originally:

Alcoa [*] AlliedSignal American Express AT&T Boeing Caterpillar [*] Citigroup Coca-Cola Dupont [*] Kodak Exxon GE [*] GM HP Home Depot Intel IBM [*] International Paper Johnson & Johnson JP Morgan McDonalds Merck Microsoft 3M [*] Philip Morris Procter & Gamble [*] SBC Communications United Technologies Wal-Mart Walt Disney

Today it includes

Bank of America Chevron Cisco Kraft Pfizer Travelers Verizon

7/30 is a big turnover for your yardstick. Citigroup was added in late 1999 when they absorbed Travelers Insurance; now that they spun them back out, Travellers has returned and Citigroup is out; so maybe that's really just 6/30 ...

/jordan



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