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Alternative Indexing

On 06/20/2013, in Investment Concepts, by Jordan Wilson

I typically recommend smaller investors utilize passive investment techniques. That is, investing in open-ended no-load index mutual or exchange traded funds.

I have not mentioned that there are different ways to construct market indices. There are.

The normal market index is weighted by market capitalization. The bigger the company, the higher the weight in the index. The vast majority of index funds you consider will be this type.

But there are alternative indexing options out there too. I want to touch on them today. 

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How Much to Invest Abroad?

On 06/17/2013, in Asset Allocation, Equities, by Jordan Wilson

Individual investors may reap diversification benefits by investing internationally.

The level of benefit is based on many factors – cross-country correlations, major industries, domestic companies that operate globally, etc. Over time, global diversification benefits have fallen. However, investing outside your home country is still worthwhile.

The question then, how much should you invest abroad? 

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Market Capitalization

On 08/24/2010, in Equities, Investment Concepts, by Jordan Wilson

A company’s market capitalization (commonly shortened to “cap”) is found by multiplying the current share price by the number of shares outstanding.

Market capitalization is useful in comparing companies of similar size.

It is also used as a tool by mutual funds when determining investment style.

So what are the different market capitalization segments?

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