For all you buy-and-hold investors out there, we just wanted to give you a heads up. The Dow Jones Industrial Average is making some changes for the first time since 2013. The technology powerhouse, Apple (AAPL) will be added to the DJIA on March 19th, and AT&T (T) will be removed.
David Blitzer, chairman of the Index Committee, weighed in on the move on Indexology over the weekend. Some important comments from Blitzer included:
“One thing that Apple isn’t likely to get by joining the Dow is a pop in its stock … Not enough buying is likely to be generated to even briefly move a stock as large as Apple.”
This move will bump the average technical score of the Dow Jones stocks only slightly, but we will have to wait and see what kind of real effect this move will have on the DJIA.