On Bank Of America’s Removal From The Dow Jones
stupidlittletuftybeard says: Slumping stock performance from Bank of America? What the hell are they talking about?
» SFB says: While graphs of several recent time periods (6 months, 1 year) would give the impression that Bank of America is performing strongly on the market, the company isn’t performing so hot when compared to the five-year turnaround of other prominent American banks like Capital One and/or new DI member Goldman Sachs. Both of those companies, along with a number of other financial organizations, have seen their shares return (and in many cases, surpass) their values just before the “Great Recession”. Meanwhile, though Bank of America has been trending upward for several years, the company still remains well below fifty percent of its pre-Recession value. Given that the Dow Jones is meant to be a semi-accurate indicator of the market’s strength on any given day, if we had to guess, we’d assume the people in charge of this particular decision likely realized that using one of the banking sector’s worst performers wasn’t the best way to get the job done.—Scott @ SFB
Editor’s note: Not that you would, but don’t use this commentary as stock market advice.