The Motley Fool Discussion Boards

Previous Page

International Investing / Australia (All-Ordinaries)


Subject:  Re: Australian equivalent of Dow Jones Average Date:  10/21/1999  3:24 AM
Author:  Barcoo Number:  842 of 6186

One main difference between the 20 Leaders and the Dow is that companies can drop out of the 20 Leaders purely on Market Cap but the Dow has very few additions and deletions. This will skew the data. It is my belief that the foolish 4 strategy works because of the big index funds investing in the Dow, this will exagerate over and under performance and when sanity prevails the price comes back to the mean.

Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us