Quote:
Originally Posted by kevman
OK, fair enough...but I have a question so please learn me...
If the oil companies have bigger market caps than the banks and posted higher gains than the banks posted losses, how do the 5 banks have MORE pull on the TSX index than all of the oil companies? Again, I'm not trying to claim that the only reason the TSX is down is because of the coalition talk but IMO you'd have to be naive to think that the prospect of an unstable government does not rattle investor confidence a little, no?
For more clarificaiton... I'm not sayin the idea of a non-Conservative vs. a Conservative government hurt the TSX. I'm saying the idea of NO government STABILITY for either party can't help.
Or maybe I'm out to lunch here in which case I'll gladly admit I'm wrong...
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It does not go by market cap. It is based on 300 stocks on the TSX and they have equal rating. That is why the Dow is actually pretty useless and I guess the only reason why anyone follows it is tradition. It is based on only 30 stocks.
So if a kid tomorrow, dies at Disney, drinking a coke and choking on a McDonald's freedom fry bought buy an AMEX card, the Dow would be up crapcreek. Not sure why the TSX would follow that trend.