Adjusting to the recent changes in the Dow is generating a Pandora's Box of questions about the efficacy of the Foolish Four process. After 103 years of blue-chip bliss, the Dow apparently needed to shake things up in order to enter the 21st century, more accurately reflecting a varied marketplace. People create their lives, homes, jobs, and investing techniques in ways that please them, hoping to keep the chameleon of change at bay. Much time and effort is devoted to creating environments, both financial and emotional, that are as comfortable as warm slippers. To suddenly wake up one day and find your well-structured investing philosophy in volcanic eruption can be very, very scary.
Fear is inevitable.
And surely there has been progress since the Dow Jones Industrial Average was originally created on May 26, 1896. And even GE was kicked off the Dow in 1898, only to return nine years later and claim a permanent parking spot. Well, permanent, thus far. Guess everyone was too busy fighting the war, then producing those baby boomers. While the Dow has increased the frequency of its changes in recent years, it's a mere reflection of the increased pace of the times.