As the Dow Jones Industrial Average experiences ongoing reconfigurations to remove weak or bankrupt components such as AIG or, most recently, the replacement of GM and Citigroup with Cisco Systems and Travelers Group, it becomes increasingly evident that this stock index is not truly representative of economic and market realities. The unemployment rate, now at 9.4% (and arguably under-reported) is likely a better economic barometer. With PE ratios now at record highs due to the plunge in corporate earnings, the high unemployment rate (as a harbinger of weak domestic consumption) does not bode well for an imminent recovery in earnings to justify current prices or an additional climb in stock value. Featuring Pete Grant and Jonathan Kosares.

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