Dow Chemical Outperforms DOW JONES Significantly

In the past 6 months DOW chemical company has risen 101.6%, while the Dow Jones Industrial Average has only risen 27.67%. The differences in performance can be explained in a variety of ways, and personally I believe that especially since DOW has price setting power in its field of chemicals it can always remain on top if it can keep its finances in order. Some time ago, before the major recession, DOW purchased Rom and Haas for over $18 billion and investors were uncertain it would be able to pull through carrying such a burden of debt. Now it seems Dow has sold some of its businesses such as powder coatings, and has increased its total equity every quarter in 2009.