Apple To Replace AT&T In The Dow Jones

Because of the coincidence that I wrote an article about AT&T’s merger with DirecTV on the eve of the Dow Jones announcement that Apple would be replacing AT&T in the Dow Jones Index, I received quite a few e-mails from readers asking whether that kind of move should be treated as a signal that Apple should be purchased or AT&T should be sold. I did not get a chance to respond to any of those readers, but hopefully my discussions here will provide an adequate answer to the question.

First, the Dow Jones Index has little rational bearing on actual buy-and-hold decisions these days, despite the fact that it is widely circulated in the news. If you turn on the TV at 10 o’clock and watch the news, it is likely that the reporters will give you both the results of the S&P 500 and the Dow Jones from that … Read the rest of this article!