Did a little research……Exxon Mobil (XOM) is being replaced by Salesforce (CRM)…..Raytheon (RTN) and Pfizer (PFE) are being replaced by Amgen (AMGN) and Honeywell International (HON)….these changes will take effect on Monday, Aug 31, 2020.
Not much. Why? Not much is indexed to the Dow. Most index funds that people are invested in, are tied to the S&P 500. So it’s more symbolic when someone gets into or gets kicked out of the Dow Jones Industrial Average. Yet, getting the boot from the S&P 500 means many index tracking funds have to sell out of that stock and if some stock gets added to the index, then those tracking funds have to buy it. So, that one’s the bigger deal.
XOM, however, is not the company it once was. There are far superior oil companies out there, fundamentally. We held it once in the past when it had better fundamentals. But it doesn’t appeal to me today. It’s why we’ve been in others and not it.
It’s all in a reaction to the dip in the price of oil and the economic tough-times that they know are coming for the economy…in my opinion. But yes, there are better places to be, and we’ve been in them. Agreed.