5 Dow Stocks to Sell Now

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New Dow Stocks Cisco and Travelers Not Worth Buying

So what does the announcement that Cisco (CSCO) and Travelers (TRV) will now replace General Motors and Citibank (C) in the Dow Jones Industrial Average mean for these stocks?

Being included in the Dow may be an honor for those that helped build these companies, but the being on the list is no guarantee of future profits for current shareholders.

Oh sure, there will be a bounce due to index fund buying. Funds that buy stocks mimicking a particular index must be adjusted to include CSCO and TRV. That will create lots of buying pressure in the short term.

Once that buying is done, though, I don't expect CSCO and TRV to reward investors. I rate CSCO a D, or sell, and TRV a C, or hold.

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