Saturday, May 14, 2005

The Problem With Indexes

Thoughts from the Frontline -The Problem With Indexes
So this is the first time we've circled back to some concrete implications for the market. It means that capitalization-weighted indexes on which our entire industry relies, are fundamentally, structurally flawed and will inherently overweight every stock that's above fair value and underweight every stock that's below fair value.
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