Comments on: Another Reason to Like Indexing http://allfinancialmatters.com/2008/12/08/another-reason-to-like-indexing/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: JimmyDaGeek http://allfinancialmatters.com/2008/12/08/another-reason-to-like-indexing/comment-page-1/#comment-386503 JimmyDaGeek Tue, 09 Dec 2008 14:52:15 +0000 http://allfinancialmatters.com/?p=3014#comment-386503 Indexing without rebalancing increases your volatility, and, therefore, your risk. I believe small cap value is supposed to give the best return, so put all your money into that and enjoy the roller coaster ride. Indexing without rebalancing increases your volatility, and, therefore, your risk. I believe small cap value is supposed to give the best return, so put all your money into that and enjoy the roller coaster ride.

]]> By: poor boomer http://allfinancialmatters.com/2008/12/08/another-reason-to-like-indexing/comment-page-1/#comment-386396 poor boomer Tue, 09 Dec 2008 04:44:23 +0000 http://allfinancialmatters.com/?p=3014#comment-386396 Indexing is great if you're into that sort of thing. Indexing is great if you’re into that sort of thing.

]]> By: Adam http://allfinancialmatters.com/2008/12/08/another-reason-to-like-indexing/comment-page-1/#comment-386376 Adam Tue, 09 Dec 2008 03:18:26 +0000 http://allfinancialmatters.com/?p=3014#comment-386376 You also need to be good at predicting which candidate will win as the stocks will typically jump the day after the election before you can get a buy order in. You also need to be good at predicting which candidate will win as the stocks will typically jump the day after the election before you can get a buy order in.

]]> By: Early Retirement Extreme http://allfinancialmatters.com/2008/12/08/another-reason-to-like-indexing/comment-page-1/#comment-386369 Early Retirement Extreme Tue, 09 Dec 2008 02:50:29 +0000 http://allfinancialmatters.com/?p=3014#comment-386369 Well if you pick an index, you have to worry about how the entire market responds the fiscal and monetary policy set by the government instead. It tends to do differently depending on who's in office as well. Back to square one. Indexing basically means that you take 100% of the market risk. Individual stocks do not necessarily share 100% of the market risk (note that some companies did quite well during this recession). Instead they have business risk. The only question you have to ask yourself is: Which do you understand better. Markets or companies? Well if you pick an index, you have to worry about how the entire market responds the fiscal and monetary policy set by the government instead. It tends to do differently depending on who’s in office as well.

Back to square one.

Indexing basically means that you take 100% of the market risk.
Individual stocks do not necessarily share 100% of the market risk (note that some companies did quite well during this recession). Instead they have business risk.

The only question you have to ask yourself is: Which do you understand better. Markets or companies?

]]> By: Penny Pinching Mom http://allfinancialmatters.com/2008/12/08/another-reason-to-like-indexing/comment-page-1/#comment-386253 Penny Pinching Mom Mon, 08 Dec 2008 21:07:28 +0000 http://allfinancialmatters.com/?p=3014#comment-386253 I just discovered your blog today and I really like it. I have a brand new online budget keeping system. If you want to check out my website, it’s www.simplymybudget.com I just discovered your blog today and I really like it. I have a brand new online budget keeping system. If you want to check out my website, it’s http://www.simplymybudget.com

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