Fallacy of Comparing an Index From Time of 1987 Crash

I read this yesterday:


"But $10,000 invested in the Dow on Friday, Oct. 16, the last trading day before the crash, and held until the present would still have more than quintupled."

This is bunk and has been pointed out many times. The Dow is an index with many companies going bankrupt. When the end approaches these stocks fail the measures that enable them to be listed stocks on the NYSE. They are taken out and replaced with a healthy stock.