The Economist (US), December 16th, 2006
A squabble erupts over how best to create a stockmarket index
THE fundamental things apply, as time goes by. It was the favourite song of Humphrey Bogart and Ingrid Bergman in "Casablanca". Now it could be the theme tune for a resistance effort of a different sort--one against the long-established way of drawing up stockmarket indices.
The new benchmarks are based on "fundamentals"; the profits, dividends, asset value and cashflows of the businesses they contain. But the indices, although they have their attractions, are already under attack from traditionalists.
Typically, stockmarket me...
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