The World Blog by humble servant.

Interesting, as of August 31st which has been our Target for a turning point in the stock market on this immediate run, the Dow Jones Industrial index is being changed to Diversified the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy . Three stocks being removed are Pfizer ,Raytheon Technologies and Exxon Mobil. The Dow Jones Industrial Average is weighted by Price, which is an interesting approach. This means that the higher the nominal share price of a component, the more effect that individual stock will have on the index performance. The S&P 500 is constructed by the market value of the company rather than the share price. This is what has prompted the change in the company of the Dow. Apple is splitting 4-1 so that will alter the value of Apple within the index since it is based on share price rather than the value of the company. In theory, if Apple did a split of 10-1 , it be kicked out...

Many central banks are beginning to understand that all the old theories from the Keynesian,Phillips curve, quantity theories of money and inflation have become obsolete. The cryptocurrency and gold bugs continue to preach the very same theories which the central banks have used and watch how they have failed to stimulate the economy. Some have moved to negative interest rates following the Keynesian model. That too has failed since 2014 after 6 years. Intelligent people have to ask themselves at some point when does a losing position warrant abandonment? The FED will change its view of inflation. Do not expect them to say it bluntly that all these theories have failed. Nevertheless, in discussions behind the curtain, the realization that everything turns on a matter of confidence. The average person knows nothing about the Phillips curve or know about the quantity theory of money. They respond based upon what they see in the street. The FED will change its view of Application beca...