You are currently browsing the Capital Comments weblog archives for the day 5. April 2009.
| S | M | T | W | T | F | S |
|---|---|---|---|---|---|---|
| « Mar | May » | |||||
| 1 | 2 | 3 | 4 | |||
| 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| 12 | 13 | 14 | 15 | 16 | 17 | 18 |
| 19 | 20 | 21 | 22 | 23 | 24 | 25 |
| 26 | 27 | 28 | 29 | 30 | ||
- Canadian Tax (1)
- Cross Border Issues (2)
- Currencies (12)
- Economics (33)
- Energy (3)
- Exchange-Traded Funds (3)
- Fixed Income (10)
- Healthcare (3)
- Immigration (4)
- Inflation (7)
- Investing (18)
- Investment Industry (6)
- Investments (25)
- Investor Psychology (9)
- Markets (15)
- Pensions (2)
- Precious Metals (6)
- protectionism (2)
- Readings (3)
- Real Estate (13)
- Retirement (3)
- Seabank Media (2)
- Tax (9)
- Taxation (30)
- Technical Analysis (2)
- Uncategorized (58)
- World News (2)
- 22. July 2010: Mutual Fund Fees - What you need to know
- 20. June 2010: The Risks of Following the Crowd
- 13. June 2010: Arizona Immigration Targeting
- 13. June 2010: New Bank Overdraft Rule in the USA
- 30. May 2010: E2 US Visa Holders at Risk on Renewal
- 23. May 2010: Beware Principle Protected Notes
- 18. April 2010: Strategies for a Volatile Market
- 17. April 2010: China’s Rules to Curb Property ‘Madness’ Will Take Effect Now
- 6. April 2010: Should I convert my IRA to a Roth IRA?
- 3. April 2010: When is a pension not a pension?
Blogroll
Canadian News
Canadian Tax
Fav Blogs
Immigration
Archive for 5. April 2009
Market Indexes Are Passive Investments - Not.
5. April 2009 by Dan Walkow, CFA, CMT.
Many investors assume that major stock market indexes are passive or constant. This couldn’t be farther from the truth. Indexes are changed all the time, and especially after big moves. For example recently the Dow Jones Index booted Honeywell and Atria and added Bank of America and Chevron. This week CBS reports that the MSCI Emerging Markets Index is contemplating changes as well.
Why should you care. Two reasons. First indexes are used to record historical performance. Many investors and investment managers benchmark their investments against an index and often claim performance numbers versus the index. How reliable is this methodology if the index is “managed” and is a moving target. The Dow Jones Average or the Standard & Poor’s Indexes are not what they were 10, 20 or 30 years ago.
Secondly changes in indexes can create swings in the underlying stocks as money managers and “Indexers” realign their investments. Given the large and growing popularity of Index Exchange Traded Funds this is no small matter. Heads Up!
Posted in Uncategorized | No Comments »
Technical Analysis
5. April 2009 by Dan Walkow, CFA, CMT.
As a Chartered Market Technician I am often asked for a “Techinical Interpetation” of the market or individual securtities. I believe that Technical Analysis has real value when it comes to investment decisison making and an understanding of the basics by investors is essential. Stockcharts.com does an excellent job educating investors in the basics of technical analysis and you can access it by going to www.stockcharts.com.
Check out a recent piece on “candle stick charts” here.
Posted in Technical Analysis | No Comments »