Yesterday, President Obama signed a sweeping financial reform bill into law, which is poised to bring order and structure to the US financial industry. However, one problem remains unhinged, the structured of the Dow Jones Industrial Average.
The Dow, which is made up of only 30 of the largest US publicly traded corporations also needs to be revisited. I personally advocate for the US Senate Finance Committee to look at the structure of the Dow Jones, perhaps authorize to change its structure to 50 companies instead of 30.
By increasing its composite structure, it will likely help to boost its fraction base which could help bring more leverage to perform better for its trading trend, which in part could help best effect investors and consumers’ sentiment about the US economy.