Index Investing: Opportunities & Obstacles

Month: April 2017

April 26, 2017  |  

Index Investing: Opportunities & Obstacles

Legend has it, a pharmacist named John Pemberton was searching for a headache cure when he tried blending Coca leaves with Cola nuts. Who knew his recipe was destined to become such a smashing success, even if Coca-Cola® never did become the medicine Pemberton had in mind? In a similar vein, when Charles Dow launched the Dow Jones Industrial Average (the Dow), his aim was to better assess stock prices and market trends, hoping to […]

,

April 24, 2017  |  

Stock Market Index Mechanics: Interesting Idiosyncrasies

Key Takeaways It all started with the Dow Jones Industrial Average, but its time is over How many individual securities does an index need to track to correctly reflect its target market? How well do you really know what your index is up to? Market indexes. You read about them all the time, such as when the Dow Jones Industrial Average (the Dow) topped 20,000 points in early 2017 … and then broke 21,000 just […]

,

April 17, 2017  |  

Market Indexes: A Few Points about Index Points

As we covered in our last piece, indexes have their uses. They can roughly gauge the mood of a market and its participants. If you’ve got an investment strategy that’s designed to capture that market, you can see how your strategy is doing in comparison … again, roughly. You can also invest in an index fund that tracks an index that tracks that market. This may help explain why everyone seems to be forever watching, […]

,

April 12, 2017  |  

Understanding Stock Market Indexes Part I: Indexes Defined

Key Takeaways A stock index represents a part or the total stock market Indexes can be used to gauge investment performance for a market segment Indexes are not predictive Since nearly every media outlet on the planet reported the news, you probably already know that the Dow Jones Industrial Average topped 20,000 for the first time on January 25, 2017. But when a popular index like the Dow is on a tear, up or down, […]

,