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FA Center: Why Walgreens, not GE, could suffer the ‘Curse of the Dow’

General Electric is out; Walgreens Boots Alliance is in. When this switch to the Dow Jones Industrial Average was announced on Tuesday, many commentators predicted that it would give Walgreens stock a boost, as investors who buy Dow stocks would buy more Walgreens.

It doesn’t usually work that way. A more likely outcome is that Walgreens WBA, +5.25% not GE, -0.54% will suffer the Curse of the Dow.

A study I did with two of my students a few years ago looked at every change in the Dow DJIA, -0.17% back to October 1, 1928, when the Dow expanded to 30 stocks.

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