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To: robnhood who wrote (31332)	10/25/2000 6:35:02 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

yep...what's truly rummy is that they have allowed NT to become such a huge weight in the index...yes, i understand that that's how cap-weighted indices are supposed to work, but if anything this example is a strong indictment of same. i mean what use is it for the hedging strategies of the average portfolio to have to use such an index? it doesn't make sense...especially as it has aggravated the big cap bubble due to the regular rebalancing of weights being mimicked by index funds mindlessly, which pushes the market caps of the largest cos. ever higher, without any fundamental justification for this insane multiplier effect. it reminds me a bit of hedonics...same method of introducing a compounding error in economic decision-making.