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October 16, 2006


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Douglas Knight

and don't forget to adjust for inflation!

Street Focus

Agree, no big deal. Just a "headliner" for major media.


And-- The DJIA is weighted by the prices of the stocks in the average. Perhaps that is what you meant by saying its not an index. When a stock splits, its weight is cut in half. Microsoft is not as heavily weighted as is 3M. Go figure! Of course this is one reason why it is hitting a new high. Its old high was not distorted by the bizarre big cap peaks of Cisco and Intel.

Wow, what a day it has been for Caterpillar, one of my favorite stocks. Ouch!! But we should not complain about the market being illogical. It is the illogic that we try to tap into to make money. When things go from illogical to even more so, it is just to be expected. If it were easy, we'd all be rich.

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About Big Mike

  • Big Mike has a BS in Economics from the Wharton School of the University of Pennsylvania, an MBA and JD from Arizona State University. He once worked as a stockbroker for six weeks.

    His politics blog is Half Sigma.

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