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I've always thought that capitalization-weighted indices like the S&P 500
and Nas 100 will do better than the average stock, as stocks with increasing
market capitalization are given more weight in the index. The Dow however
will perform more like an average big-cap stock.
----- Original Message -----
From: Bob Fulks <bfulks@xxxxxxxxxxxx>
To: Tom Alexander <gta3@xxxxxxxxxxxxx>; Zaheer Bhyat <Zaheer@xxxxxxxxx>
Cc: RealTraders Discussion Group <realtraders@xxxxxxxxxxxx>
Sent: Monday, October 04, 1999 9:06 AM
Subject: Re: Stop me before I day Trade again!
> This is a common misconception. The upward sloping curve of the stock
> indices makes it look as if Buy/Hold always works. What is not
> generally recognized is that much of this growth has been due to
> inflation.
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