Dow at 11K, But Still Far From Historic High

Dow Trivia Question: Which is the one stock that was removed from the Dow within the past 3 years that is currently up since the Dow’s historic high in October 2007?

(The answer is at the end of this post.)

While investors welcomed back Dow 11,000 last Friday, regaining that “milestone” came with a reminder that the Dow was still over 3,000 points or 22% below its levels of 3 years ago. On October 9, 2007, the Dow closed at its all-time of 14,164.53, only to top that level on an intraday basis two days later (October 11, 2007) at 14,198.10.

Three years after hitting those remarkable levels, just 4 Dow components are in positive territory (McDonald’s, Wal-Mart, IBM, and Coca-Cola), while nearly two-thirds of the index (18 stocks to be exact) are still down double-digits.

Current Dow components Since October 9, 2007

Meanwhile, very few sectors and indices (at home and abroad) have managed to post any profits for investors since the U.S. markets closed at their all-time highs three years ago.

Major Indices & Sectors Since October 9, 2007

Trivia Answer:Altria. Of the 5 companies that were removed from the Dow since October 2007, only Altria has posted a gain (up 14%) over the past 3 years.

During that same period, Honeywell, which left the Dow in February 2008, has lost 26% of its value, while financials Citigroup and AIG have lost a substantial amount of their value (down 91% and down 97%, respectively) as a result of the Financial Crisis of 2008. That of course leaves 1 company, General Motors, which no longer trades after filing for a government-supervised bankruptcy in June 2009.

As for the newer components (Bank of America, Chevron, Kraft Foods, Travelers, Cisco Systems), three of the five stocks have outperformed the Dow’s 22% decline since October 2007 (Travelers down 1%, Kraft Foods down 9%, Chevron down 10%).

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