Mo-Mos Lose Their Mojo
Strength in a couple DJIA stocks is covering up some very poor market action. The DJIA is particularly misleading at times because the stocks are price-weighted, which means a move in IBM (IBM) is given more than 20x the weight of a move in Bank of America (BAC), even though IBM's market cap is not even 3x Bank of America's.
The media has always preferred the DJIA. As a result, that is what many people consider to be the market, but it is often an extremely poor indicator of what is really happening....256 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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