Re:Ask HN: Why is the stock market so high?
by ptype on Friday March 03, 2017 @02:36AM
(#13781332)
I struggle to see why that is a problem? You will need to rebalance the portfolio, yes.
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Re:Ask HN: Why is the stock market so high?
by brudgers on Friday March 03, 2017 @01:54PM
(#13785169)
The DJIA replaced each share of ATT with a share of Apple on a ledger. Without additional investment or buying and selling other assets, there's no way to replicate that in a portfolio due to the difference in share price. Essentially, the DJIA pumped in an ~300% increase in equity value on the ATT shares...or divided among thirty companies a 10% profit.