Benchmark

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TechCrunch  1 hr ago  Comment 
 Many people enjoy several careers over their lifetimes. Then there’s Mike Lynn, an emergency room doctor in Oakland, Calif.; a reserve deputy sheriff; a faculty member at UCSF; a former venture capitalist; and the founder of Hound Labs, a...
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U.S. benchmark 30-year mortgage rate remains above 4%
The Economic Times  May 11  Comment 
The gap between the benchmark bond yield and the policy rate has widened to about 70 basis points from 52 bp.
TechCrunch  May 9  Comment 
 Benchmark’s small partnership has added a new general partner, Sarah Tavel, the venture firm announced this morning, saying that her “career-long desire and commitment to be one of the world’s great venture capitalists” make her an...
Mondo Visione  May 9  Comment 
Nasdaq (Nasdaq:NDAQ) announced today the results of the semi-annual review of the OMX Helsinki Benchmark Index (Nasdaq Helsinki: OMXHB), which will become effective with the market open on Thursday, June 1, 2017. Kotipizza Group Oyj (PIZZA)...
Mondo Visione  May 5  Comment 
Oslo Børs has revised the composition of the Benchmark Index (OSEBX). The number of companies included in the index will be 62.  The Benchmark Index is intended to be an investable index that comprises a representative selection of all the...
TechCrunch  May 1  Comment 
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Forbes  May 1  Comment 
Startup Prefer promises to match users to professionals based on the recommendations of friends. It's launched out of top VC firm Benchmark, which led its Series A round.
The Economic Times  May 1  Comment 
Domestic PE investment is rising and stood at USD 3.41 billion last year and crossed the peak of USD 3.3 billion set in 2007, it said, adding that this year may set new benchmark.




 

Benchmark

A benchmark is a proxy for a market, economy, class of equity, or sector, generally setting a standard against which the performance of a stock, bond, mutual fund, commodity, or other security is measured.

Benchmarks are also used to gauge the health of a market, sector, or entire economy.

Examples

  • The S&P 500 (.SPX-E) and Dow Jones Industrial Average (.DJIA) are often used as benchmarks for the United States economy in general. That is to say, their performance is used both to gauge the health of the economy and as a reference of comparison for the performance of a stock portfolio or mutual fund.

Benchmark

A real benchmark |ˈbɛntʃˌmɑrk| is an unmovable surveyor's mark cut concrete or stone, and used as a reference point in measuring altitudes. There is no such thing as a floating benchmark. [1]

From an investors view, cash is used as a benchmark to gauge the returns on there principal, and governments use cash as a benchmark to levy there taxes on.

Wall Street uses benchmarks that they make up themselves to justify their fees. [1] Generally, the earnings multiple for the market as a whole is a helpful benchmark. [2] Benchmarks are a smokescreen used by Wall Street to distract investors from gauging their investment returns against cash. Comparisons are fraught with peril, because a fund can look unjustifiably good or bad if it is compared with the wrong index. [3] Investors are concerned with absolute, not relative risk and return. Minimizing risk is about diversification. [4]

From "surveyor's point of reference," 1838, [2]

References

  1. Wall Street words: an A to Z guide to investment terms for today's investor By David Logan Scott ISBN-10: 0618176519 pg364,<ref> The fee increases or decreases proportionately with the investment performance for the fund compared to the index. <ref>Mutual Funds: An Introduction to the Core Concepts by Dr. Mark Mobius ISBN-10: 0470821434 Chapter 1</li> <li id="_note-1">[[#_ref-1|↑]] A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing By Burton Gordon Malkiel ISBN-10: 0393062457 pg122</li> <li id="_note-2">[[#_ref-2|↑]] Mark Hulbert, New York Times, January 8, 2006</li> <li id="_note-3">[[#_ref-3|↑]] Dean LeBaron's Treasury of Investment Wisdom: 30 Great Investing Minds by Dean LeBaron and Romesh Vaitilingam ISBN-10: 0471152943 pg118</li></ol></ref>

See Also

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