Benchmark

RECENT NEWS
MarketWatch  Feb 27  Comment 
Best month in a year for London benchmark FTSE 100
MarketWatch  Feb 24  Comment 
London stock-market benchmark FTSE 100 closes at all-time high
Mondo Visione  Feb 24  Comment 
Xignite, the leading provider of market data from the cloud, announced today that it has become a distributor of the MSCI Global Equity Indexes via its cloud API platform. Through this distribution agreement, Xignite and MSCI joint clients...
MarketWatch  Feb 24  Comment 
The U.K.’s benchmark FTSE 100 was little changed Tuesday, but shares of BHP Billiton rose after the mining heavyweight’s fall in profit was lower than anticipated.
Mondo Visione  Feb 23  Comment 
Independent Reserve, the Bitcoin market, has become the only Australian Bitcoin exchange to be included in the TeraBitSMIndex, the global benchmark for Bitcoin pricing. CEO Adam Tepper said the addition was a testament to the quality of...
MarketWatch  Feb 19  Comment 
U.S. benchmark mortgage rate rises
Reuters  Feb 18  Comment 
S&P BSE Indices, the index provider for BSE Ltd, said on Wednesday that it would allow the inclusion of differential voting rights shares (DVRs) in the main benchmark indices.
Mondo Visione  Feb 13  Comment 
The Permanent Representatives Committee on 13 February 2015 agreed, on behalf of the Council, a negotiating stance on new rules aimed at ensuring greater accuracy and integrity of benchmarks in financial instruments. It asked the Latvian...
Forbes  Feb 12  Comment 
Benchmark partner Bill Gurley is sounding the alarm again.
MarketWatch  Feb 12  Comment 
U.S. benchmark mortgage rate rises: Freddie Mac




 

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

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki