September 20, 2013 was the last time there was a major shakeup in the DOW. Bank of America (BAC), Alcoa (AA) and Hewlett Packard (HPQ) were all dropped from the index.
Since being eliminated from the DOW, they’ve all significantly outperformed the S&P500 (see chart).
- BAC: 132%
- AA: 173%
- HPQ: 178%
- S&P500: 65%
Being dropped from the DOW might be more of a blessing than a curse. If anything, I view it as a positive contrarian indicator. I remain long in my GE position.
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