Word: indexed
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Dates: during 1990-1999
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Just what is index investing? Nothing more than buying all the stocks that make up an index in an effort to replicate in your own portfolio the index's gains or losses. Now some market analysts are finding an insidious side to this seemingly logical procedure. The knock is that index funds are a perpetual investment machine, mindlessly buying the stocks that constitute the index, so as cash rolls in, the index moves higher, without regard for the prices being paid. Critics say the Dow Jones industrial average, which passed 8000 last week, did so well ahead of its rightful...
...anyway. Sure, the indexes are bloated. Anybody can see that. But don't blame the index funds. It's part of a mania that has bloated the entire market. There's good reason to be worried about a steep correction that would hit all stocks. So stick your money in a mattress if you're worried. But if you are committed to owning stocks for the long haul, indexing still makes sense. For one thing, there is scant evidence that major indexes fall harder than most stock funds. In 1987, the year of the crash...
...hard to imagine controversy over stock-index funds, investments so sensible and pure that they are practically motherhood on Wall Street. The problem, it seems, is that this particular mother has consumed a few too many bonbons and grown to a crushing weight. Money has been flowing into stock-index funds in torrents in recent years as investors have caught on to their appeal: index funds cost little to run, compared to actively managed funds, so more of the profits are passed on to investors. Index funds are also easy to track since they move in near perfect tandem with...
...right around high noon Wednesday when the Dow Jones Industrial Average cleared 8,000, driven by heavy volume and some encouraging news about inflation. With the new milestone, the index has now doubled in less than two and one-half years, having crossed 4,000 first in February 1995, and some gape-mouthed analysts are ready to bet seriously on 10,000 by the year 2000. Details of the day's trading in Money Daily...
...offering. And when the argument turns to the details of the various proposed tax breaks, Clinton has positioned himself as the champion of hardworking parents: while he pushes his education tax credits, for instance, the same Republicans who wanted to close the Education Department will be fighting to index capital-gains taxes so that investment profits can be insulated from inflation...