Lately, there has been no shortage of articles and posts claiming that the euphoric gains of the dotcom era were driven exclusively by unprofitable companies. That is simply not true. The “MAG7” of that period consisted of Cisco, Intel, Oracle, Microsoft, Dell, Sun Microsystems, WorldCom, and Ericsson. Every single one of these stocks fell by […]
Címke: Dow Jones
It is important not only what we invest in, but also the proportion in which we hold each asset. The same Dow Jones Industrial Average basket of thirty stocks has a completely different risk-return profile if we weight them differently. Let’s see what this means in practice with three different versions. Common index weighting […]