Of course, being who I am, I went home and built a spreadsheet to recalculate what would have happened if Dow Jones had decided to add Apple to the index instead of Cisco back in 2009. Imagine my surprise to see that the Dow be would over 2000 points higher.
In real life, the Dow closed at 12,874.04 on Feb 13, 2012. However, if they had added Apple instead of Cisco, the Dow Jones would be at 14,926.95. That’s over 800 points higher than the all-time high of 14,164 previously set on 4/7/2008.
Can you imagine what the daily financial news of this country would be if every day the Dow Jones was hitting an all-time high?
Interesting to think about — but it’s really more of an argument against using the Dow as a measure of the whole market than an argument that Apple should have been included.
If only the Dow had been smart enough to include Apple instead of Cisco.
Of course, it is likely that Main Street would be doing poorly still and that the housing market was still bad and that the jobs situation would not be pretty.
But those guys on Wall Street would be doing quite well. Perhaps it is lucky for them they did not choose Apple.
Otherwise there might be even greater anger at Wall Street as it reached new highs and the rest of us were still toast.