You are hereby forbidden from talking about the Dow ever again. The S&P 500 weights 500 constituents by their market cap; the Dow weights 30 random-ish constituents by their PRICE. IBM’s weight in the Dow is 4.5 times that of GE because it had a couple fewer stock splits over the years or issued fewer shares; in the S&P its weight is, correctly, about 60% of GE’s, because it’s a smaller company. The Dow is what crazy people talk about on CNBC.
Also, Intrade should list the conditional futures—S&P price with bailout, S&P without bailout.
You are hereby forbidden from talking about the Dow ever again. The S&P 500 weights 500 constituents by their market cap; the Dow weights 30 random-ish constituents by their PRICE. IBM’s weight in the Dow is 4.5 times that of GE because it had a couple fewer stock splits over the years or issued fewer shares; in the S&P its weight is, correctly, about 60% of GE’s, because it’s a smaller company. The Dow is what crazy people talk about on CNBC.
Also, Intrade should list the conditional futures—S&P price with bailout, S&P without bailout.