AIG - Remove From Dow 30 Now !!

[EdgeHunter]

Shouldn't AIG be removed from the DOW immediately and if so what should go in its place and how would that effect Dow Futures...

 

[The Kin]

Maybe we should just call it Dow 29. Plus the dow was up today despite AIG vanishing from it.

 

[Red_Ink_inc]

Quote from The Kin:

Maybe we should just call it Dow 29. Plus the dow was up today despite AIG vanishing from it.

The Dow is a price weighted (totally retarded to calculate an index this way) index. The higher the price of the stock (ie IBM) the more it moves the index.

Dollar moves in AIG, GM and PFE don't move the index nearly as much as dollar moves in IBM, CVX or PG.

You'd have to replace AIG with another financial. I say replace it with WFC, maybe even GS.

If you really want the index to soar, replace it with a company that handles forclosures or bankruptcies.

 

[EdgeHunter]

Quote from The Kin:

Maybe we should just call it Dow 29. Plus the dow was up today despite AIG vanishing from it.

Funni...

 

[S2007S]

GS or MS might fill the spot of AIG.

 

[george_s]

My guess is an insurance company- maybe MET.

But I'd like to see BRKA added. At 125,000 it would dominate the index

 

[Red_Ink_inc]

Quote from george_s:

My guess is an insurance company- maybe MET.

But I'd like to see BRKA added. At 125,000 it would dominate the index

MET is a good choice. I didn't think of that one. I don't know about MS. Be kind of funny if they put it in and it went tits up.