Dow Jones Price Weighting – Why It Matters?
This historical primer & technical overview of just exactly how the Dow Jones Industrial Average (Dow 30) is constructed. You may be surprised to learn its not at all how you think the Dow is constructed. In addition, we will dive into the major technical differences between Price vs Cap weighting and how they differ. Further topics covered:
– History of Charles Dow & Edward Jones
– How the Wall Street Journal is tied into this
– The “Dow Divisor” and how it works
– How is the DJIA calculated exactly (mathematically)
– Plunge Protection Team (WGFM), the REAL story
– The 737MAX crash & now Boeing Threatened the Dow 30 Index
– Price vs. Market-Cap Weighting
– Stealth Actions taken to force stealth re-weighting of the Dow
Looking forward to hearing your reviews in the comments section, Enjoy!