Replies to post #136528 on Biotech Values

[DewDiligence]

The true disconnect between the DJI and broader measures is likely the high proportion of large multinationals in the DJI.

A bigger problem with the DJIA is that it’s a price-weighted index—i.e. a $200 stock has ten times as much weight in the index as a $20 stock, even if the two stocks have the exact same market capitalization.