Matt - your blog on CPI really brings to mind the fragility of global markets and the global economy. It seems like a funny thing to say during a go-go market, I know.
One of my favorite indexes, and certainly one of the mostimportant in the world, is the Consumer Price Index (CPI).
Matt's comments the other day, together with the "alternative weighting" panel we're recording today for Journal of Indexes made me think about some things, like China.
I like that ultimate contrarian play, but it may be a bit too diversified. For that real home run opportunity, you might look at putting it all in the Bobo-Dex 10.
A Wall Street Journal article this morning got me thinking about the growing disconnect between market-cap weighted indexes and the GDP-share of emerging economies, and in particular, China.
We take all the stocks excluded from the fundamental indexes; all the stocks that don't pay dividends; all the stocks shunned by the Intellidex indexes, rotated out of sector rotation ETFs and cast aside by the quant strategies.
An email press release in my inbox today proclaimed: "Small-Cap, Large-Cap and Broad Market Russell Indexes Reach All-Time High." Sound familiar?