Are the Traditional Indexes the Best Benchmarks?
The article is written for financial planners and discusses the role of large-cap equity indexes, portfolio diversification, alternatives to the Standard and Poor’s 500 Index, comparisons of various indexes and returns, and why to avoid hedge funds. Particular attention is given to financial planners that are developing blended indexes to measure their clients’ performance. Information is also provided about evaluating assets and how much investors should put in to large-cap, small-cap, and international company stocks.