Posted Sep 20, 2013 by Martin Armstrong
They added new Dow Stocks and according to this chart they are now the new ” Dogs of the Dow”. I remember when they added Intel and Microsoft in 2000. My only thought was “that’s a really bad idea”
If the Dow is to double in the next 2 years these puppies will have to participate.
ANSWER: I agree, Adding Goldman Sachs was a brain-dead decision and I wonder honestly if there was not someone paid off to do that. We are running tests on this problem. So far, it appears that where the Dow use to lead, we may now find it lag. The index to watch may now become the SP500, not the Dow that was the flagship of institutional money. Goldman Sachs is not a real bank. It is a quasi hedge fund for itself. It really does not belong in the Dow given its role in proprietary trading.
Goldman Sachs is certainly no bank nor it is an industrial corporation.