Apple To Dow Would Instantly Push Market to All Time Highs
For close to a year, the word from Wall Street to Silicon Valley is that Apple will eventually depart NASDAQ to join the Dow Jones Industrial Average. And based on the latest industry projections, such a move would represent a massive gain for the Dow.
This week investors rejoiced as the Dow Jones Industrial Average poked above 13,000 for the first time in almost four years. Of course, if you think that's impressive, just image what would happen if Apple joined the index.
Hypothetically, says Nicholas Colas, chief market strategist at ConvergEx Group, if Apple made its new home on the DJIA, the average would instantly hover at roughly 14,000 - not far from the Dow's all time high of 14,164 recorded October 9, 2007, one year before the global economic implosion.
“There was a lot of speculation along these lines in 2011," Colas tells CNBC regarding an Apple switch to the Dow, "and I am sure that once Apple starts to pay a dividend (whenever that is) the topic will come up again."
Seeing the Dow back above 14,000 would, indeed, be a treat to investors - especially given what the market has been through since March 9, 2009 when the Dow briefly dipped as low as 6,547.