Tuesday, June 03, 2008
Holding INDEX stocks
Dear friends,
There are investment experts who advised stock market investors about buying INDEX stocks, which method over time regularly outperformed a not so expert investor's own choices.
This may be about index stocks like the S&P500, but in the case of an index of limited few stocks, there is the danger of these stocks fluctuating greatly in prices by their being overweighted or underweighted by fund managers because of their being included or excluded from the index.
One can not foresee this inclusion or exclusion unless one is privy to it. So, perhaps, it is wise to be very alert or careful holding such shares.
My little opinion only.
Ron
There are investment experts who advised stock market investors about buying INDEX stocks, which method over time regularly outperformed a not so expert investor's own choices.
This may be about index stocks like the S&P500, but in the case of an index of limited few stocks, there is the danger of these stocks fluctuating greatly in prices by their being overweighted or underweighted by fund managers because of their being included or excluded from the index.
One can not foresee this inclusion or exclusion unless one is privy to it. So, perhaps, it is wise to be very alert or careful holding such shares.
My little opinion only.
Ron
# posted by chunmu @ 6:34 PM 
