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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: GraceZ who wrote (264893)10/28/2003 11:03:25 AM
From: Don Lloyd  Read Replies (3) of 436258
 
Grace,

An excellent post.

Indexes on the other hand are dynamic, they are adjusted to include the new successful and throw out the failures. They are self healing.

That brings up the question as to which investment portfolio would give better results, one in which you only buy the stocks which are added to the index, and one in which you only buy the stocks that are deleted.

Regards, Don
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