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The Human Abstract Live

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A new high is an empty headline. I'm not writing to tell you that; you already know that. What you may not fully appreciate is just how arbitrary an index the Dow Jones Industrial Average really is.



Most notably, it's no longer very industrial. Only about one of every three stocks in the Dow is involved in what might be considered an old-line industrial (heavy manufacturing, extraction, etc.) business. A lot of the Dow components are involved in totally different businesses such as consumer products, health care, and technology. For the most part, these businesses are usually a lot less tangible. The businesses are asset-light; the future prospects are largely company specific.

Today, the extent to which the common stocks of the thirty companies move together may have more to do with their shared classification as "Dow" stocks than with the future prospects of the underlying businesses.

On April 8, 2004 some changes were made to the Dow. These weren't the first changes ? and they won't be the last. Such changes add to the arbitrary nature of the index, especially in the short-term.

Generally, the changes have been motivated more by who should go than with who should come in. Discarded Dow components can usually blame a dying industry for their exit. Sometimes, a rapidly dwindling market cap helped.

The April 2004 changes involved three spots in the index and six stocks.

Departures: AT&T (T), Eastman Kodak (EK), and International Paper (IP).

Arrivals: Verizon (VZ), American International Group (AIG), and Pfizer (PFE).

Please note that AT&T is now back in the Dow. In November 2005, SBC Communications, which was itself born from the 1984 divestiture agreement between AT&T and the Justice Department, changed its name to AT&T after acquiring that company. It also adopted the ticker symbol associated with that name (T). As a result, a chart of the new AT&T does not reflect the fortunes of the old AT&T.

None of these stocks has fared particularly well. In fact, since the changes, they've all basically underperformed the S&P 500. With the exception of Kodak (and Verizon for a very short time), none of the stocks have managed to trade above the share price they had at the time of the reshuffle

Is this just a coincidence?

As a rule, reshuffling an index through human intervention is likely to produce odd (and unexpected) coincidences.

The Dow is made up of a small number of companies. These companies tend to be very high-profile businesses. They are also high-profile stocks. Usually, they were high-profile stocks before they entered; but, obviously, being added to the Dow only increases investor interest in their fortunes. Any human intervention is likely to reflect the (current) biases of investors (and the financial media).

The result? A very human index.

Copyright 2006 Geoff Gannon
The Human Abstract Live
Have you ever considered what role human pheromones play in our day-to-day lives. Is there an invisible force that attracts humans to one another other than our looks and personalities? Is there truth in the rumour that we emit a substance called a pheromone to entice the opposite sex, or for that matter, the same sex in our general direction.

Well, if we take a "leaf out of the book" of our animal cousins then yes, there is a strong possibility that human pheromones are present in our daily interaction with each other.

What Are Pheromones?

In short, pheromones are chemicals detected by an organ in the nose called a vomeronasal organ or VNO. It's connected directly to a part of the brain and unlike the nose which detects ordinary smells, the VNO has been described as being super sensitive capable of picking up the scent of these chemicals.

Many studies have been conducted during the past 40 years on the presence of human pheromones since it was discovered that there may be a correlation between a secret scent and attraction. Dr. Winifred Cutler is probably the best known scientist and researcher of pheromones and her studies and findings have opened our eyes to the possibility that they not only exist, but play a prominent role in our lives. Dr. Cutler established a fact that we males have been aware of since the dawn of time... she claims men are important to women. Why? It's been found that women with unusual menstrual cycles, be they long or short, benefit tremendously inhaling the male odour which not only includes a male's natural body odors but in combination with sweat and hormones. Her landmark findings reveal that the chemicals in men's bodies can cause their female sexual partners to not only be more fertile but also menstrually regular and can have a positive effect on the strength of menopausal symptoms.

Now I'm not suggesting every women immediately head down to the local fitness club and charge into the men's change rooms to inhale the male essence; you'll probably get arrested, but Dr. Cutler's findings certainly provide a lot of food for thought.

The Spin-Offs

While Winifred Cutler made some landmark findings towards the benefits of human pheromones such as described above, it was always a safe bet that if there was money to be made from exploiting this discovery then you can be rest assured that it wouldn't be long before pheromones would be readily available to the general public in an artificial form. Today, you only need to do a search for the term and you'll come across any number of offerings. Pheromone product packaged in attractive perfumery containers for both men and women are available from hundreds of suppliers.

Do They Work?

I can't confirm whether these products deliver what they claim but I will say that there are many satisfied pheromone users out there. A line of thought that just knowing one is wearing the product produces a more positive persona within that person. This in turn produces a more attractive disposition. Makes sense.
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About Author
Both Geoff Gannon & Dean Caporella are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Geoff Gannon has sinced written about articles on various topics from Computers and The Internet, Home Management and Finances. Geoff Gannon writes a daily value investing blog and produces a weekly (half hour) value investing podcast at: . Geoff Gannon's top article generates over 4400 views. to your Favourites.

Dean Caporella has sinced written about articles on various topics from Parenting, Golf Guide and Surveys. Dean Caporella is a professional broadcaster. Learn the role ofin our day-to-day lives at:. Dean Caporella's top article generates over 74000 views. to your Favourites.
Common Illnesses In Children
net 2006.Rebecca Lee is a mother of four children. She is a retired midwife and author of articles about childbirth and newborn care. Safe-Baby.net provides information on common baby illnesses
 
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