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  • The Recession of 2011?

    The Recession of 2011?
    The Streettalk/Mauldin Economic Output Index
    Is There a Recession in Our Future?
    The Bright Side of Europe’s Dysfunctionality
    The “Treasonous” Fed
    Some Final Thoughts
    Some Hope and Needed Help, Plus Travels

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  • Deep Inside the Dow

    Tonight (Saturday) some 450 people will come together in San Diego to honor Richard Russell, who has been writing the Dow Theory Letter for over 50 years. In that spirit, in today's letter we are going to look deep inside the Dow, back to its very roots. The Dow is a price-weighted index as opposed to a cap-weighted index. Does that make a difference in performance? Specifically, does it affect how the Dow has performed since it was expanded to 30 names in 1928? There are some real surprises we have found, and I think you will find this letter very interesting.

    The Dow Industrials was expanded to 30 names from 20 on October 1 of 1928. Today, only nine names of the original 30 remain in the Dow. The committee at Dow Jones has replaced the other names as the companies grew out of favor, were merged into other stocks, were considered too small, or the committee felt that other companies better represented the industrial prowess of the US economy.

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  • The Problem With Indexes part2?

    Introduction s week we look at index funds, and specifically at problems that certain types of capitalization weighted index funds have. It is intuitively obvious that capitalization-weighted indexes have a larger proportion of their assets in the larger...