If you are a market enthusiast, then it’s unlikely to have escaped your attention that Tesla was added to the S&P 500 Index last month. Exxon’s deletion from the Dow Jones Industrial Average (DJIA) in August, on the other hand, may well have flown below your radar.
Markets run on narratives. After all, it is easier to think in terms of stories. And the stories that these two events are being used to support are worth scrutinising.
Tesla, now the fifth-largest stock in the US, has catapulted owner Elon Musk up the world’s richest table, briefly eclipsing Jeff Bezos as the world’s wealthiest person. Its stock price has risen eightfold since the lows of March last year. Predictably, given such a meteoric run, it’s the