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Strategies & Market Trends : Longer-Term Market Trends
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To: morokko65 who wrote (1994)11/9/2008 10:04:09 AM
From: skinowski1 Recommendation  Read Replies (1) of 3209
 
the indices are constantly rejiggered to reflect growth

kinda like playing poker and getting to substitute the cards as you go along

so on that regard bears are always doomed <g>

Indices change in accordance with their definitions... SPX must contain the largest 500 by capitalization... INDU will consists of large caps which as a group are judged to "represent" the current economy... etc. Companies that don't do well and shrink, or go belly up, or get sold - will get removed from the index -- which does create a bullish bias over long periods of time.

Index investing may be the best way to truly LTBH.... g/ng. Remember reading that index investing - when supplemented by simple rules, like going 50% cash when the index is below its 200 DMA (and/or seasonality, etc.) - can actually generate very good long term returns for those who are not interested in spending time on markets.
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