Skip to content
Subscriber Only
Opinion
Barry Ritholtz

Apple Is a Lagging Dow Indicator

The addition of Apple to the Dow Jones Industrial Average shows the keepers of the index are late again to keeping track of the market.
Maybe never would have been just fine.

Maybe never would have been just fine.

Photographer: Stephen Lam/Getty Images

I want to address the addition of Apple to the Dow Jones Industrial Average, so we have to get a few things out of the way up front.

The venerable Dow isn't really all that important. It began life on May 26, 1896, but in the last 30 or so years, it has faded in significance. It remains deeply flawed in its methodology, driven rather arbitrarily by the price weightings of its constituents rather than their market values.