DJIA: Out With The Old, In With The Unwell and Old

The Dow Jones Industrial Average (DJIA) is one of the popular futures trading vehicles and overall bell weather for the US economy. A change in structure takes effect Sept. 24: we have one in and one out.

I’d like to say out with the old, in with the new but there is a joke hidden here regarding the restructuring.

Leaving the DJIA is Kraft Foods Inc. and as its replacement we have UnitedHealth Group Inc.

Kraft have an average volume of 13,085,419 and a market capitalization of $70.92 B in comparison to UnitedHealth with 4,990,008 and $55.83 B respectively.

What’s interesting is what this may indicate about the areas considered most important to the US economy.

Kraft are a food company predominantly known for packaged foods.

UnitedHealth are a health and well-being company (one key component of the company being UnitedHealthcare Medicare & Retirement).

Now the joke at the beginning is that it may be out with the old and in with the new but UnitedHealth are banking on the old. So it is more a case of getting in with the old and the numerous ways a company like UnitedHealth can profit off the back of the unwell (dare I risk saying as a result of over-consumption of the exciting companies products) and the ever aging US population.

Out with the food and in with the old.

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