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Paul, have you ever studied how haphazard SP500 turnover runs? Last week three stocxks were added and three removed...look at the list and figure out the philosophy that went into that move....then go back over the past 5 years and look at the +/- list and see if you can discent an investment philosophy (there isn't one). But if you really want to see how capricious the SP panel is take a look at their moves 1998-2001 and you will have a better understanding of the 2000-2002 45% drop!
:*[[User:Paul.Paquette|Paul.Paquette]]Is that not the idea behind an index fund, in the case of the [[S&P 500]] it hold 500 of leading companies in leading industries of the U.S. economy. Although the [[S&P 500]] focuses on the large-cap segment of the market which represents 80% coverage of U.S. equities. [http://www2.standardandpoors.com/servlet/Satellite?pagename=sp/Page/IndicesIndexGroupPg&xcd=US&r=1&b=4&s=6&l=EN&ig=51& Source]. Yes I Agree with you, this is one of the draw back of an [[index fund]], but not all [[index fund]] follow that rule thus [[Passive Asset Class Funds]]. I admit I not as familiar with the tides and flows of the previous history of the Stock Market, maybe you can elaborate more on what you were talking about. All I know is that the U.S. Economy experience a recession and the Dot.com bubble burst thus a lot of Tech industries lost a lot of money, but before that happen it was experiencing god awesome [[Rates of Return]].
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::* '''[[User:Paul.Paquette|Paul.Paquette]]''' As you can see the only fund you should be comparing it too is [http://quicktake.morningstar.com/Fund/Snapshot.asp?Country=USA&pgid=hetopquote&Symbol=LAFFX MorningStar LAFFX] and as you can see the that mediocre index fund kills it hands down. This just goes to show "Do not compare Apples to Oranges."
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