....But look beyond the headlines, and you see a different story. While the Dow hit a new high today, not a single of its component stocks did.
Interesting, isn't it? The index is at a new all time high, but 70% of its components are down 20% or more!
The Dow Jones Industrial Average is composed of 30 stocks. Of these, fully one third of them - 10 stocks - posted their all time highs last century: Coca Cola (KO) and Dupont (DD) in 1998; and McDonalds (MCD), Walmart (WMT), Honeywell (HON), IBM (IBM), Pfizer (PFE), Verizon (VZ), AT&T (T), and Microsoft (MSFT) back in 1999 - seven years ago. Ten stocks made their all-time highs in 2000: Citicorp ( C), JP Morgan (JPM), Walt Disney (DIS), American International Group (AIG), General Electric (GE), Hewlitt Packard (HPQ), Home Depot (HD), Merck (MRK), General Motors (GM), and Intel (INTC).
Only 7 stocks made their new high in 2006, and of these only 3 of them are within 5% of their new high today. 21 of the 30 Dow stocks - that is 70%, folks! - are down 20% or more!
See for yourself in this chart:More==============>>>>>>>>