Daily Archives: September 25, 2012

James Mackintosh

It took just two months of Standard & Poor’s control of Dow Jones Indexes (CME sold it in return for a stake in the new and larger S&P DJ Indices group) for S&P to start thinking about how to reform the venerable Dow Jones Industrial Average, the second-oldest index still going.

It desperately needs reform: three of the US’s 10 largest companies are excluded, and it is calculated by averaging share prices, a daft approach better suited to the days of slide rules. This video explains – charts after the break show how the Dow has performed, and discuss how investors should respond:

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