Cisco and Travelers Added to the DOW
Not much of a surprise to see GM removed from the Dow Industrial average today with their BK filing, but I was surprised to see Citigroup (CIT) removed and replaced with Travelers (TRV). Both were long overdue, but the additions could be debated for a long time and highlights the weaknesses in owning indexes. In both cases, Dow Jones editors waited until the stock being removed had cratered and replaced them with stocks that help up relatively well in this economy. Definitely selling low and buying high. Also, they tend to lack the future growth prospects that one would want. Zacks has a good article about the better options for the index. Both Google (GOOG) and Monsanto (MON) would provide better growth over the next 10-20 years. We've been a big investor in Baidu (BIDU) instead of GOOG as it has the lions share of the China search market. Still both options are probably better for investors and give the index a better fill for the future economy instead of being so focused on th...