> The S&P 500 has just been purged of foreign firms, which apparently > means that scads of index funds will now follow suit - which strikes me > as a bit silly. > Anton Sherwood, http://www.ogre.nu/
Maybe not. Modern Portfolio Theory segregates a portfolio into various categories, and typically US stocks are a category distinct from international or foreign stocks. By purging foreign firms, the S&P becomes a more suitable vehicle for a domestic US index fund. On the other hand, if companies are increasingly global, so that few large firms are significantly "US", then it would be silly. I don't know if that's the case today. Fred Foldvary ===== [EMAIL PROTECTED] __________________________________________________ Do You Yahoo!? Yahoo! Autos - Get free new car price quotes http://autos.yahoo.com
