Benchmark

RECENT NEWS
MarketWatch  Jun 25  Comment 
U.S. benchmark 30-year mortgage rate rises to 4.02%
MarketWatch  Jun 24  Comment 
Apple is lone Dow stock in black as U.S. benchmarks risk week's first declines
Motley Fool  Jun 23  Comment 
The word "benchmark" gets thrown around a lot in the financial media, yet many people don't know the definition of a benchmark. Let's go over what it means and how investors can put this concept to use.
The Economic Times  Jun 22  Comment 
The FBIL also proposes to take over administration of forex benchmarks and other Indian Rupee interest rate benchmarks over a period of time.
The Hindu Business Line  Jun 22  Comment 
The Economic Times  Jun 22  Comment 
Thai SET index was up 0.6 per cent at 1,500.45, bouncing off Friday's close of 1,491.46. Shares of airport operator jumped 2.1 per cent.
The Hindu Business Line  Jun 18  Comment 
To be issued today, the G-Sec will help expand corporate bond market: rating agency
Cloud Computing  Jun 17  Comment 
Security has long been the No. 1 cloud computing business concern. Although the apprehension is absolutely valid, cloud computing business decision and strategies are all too often driven by the many broadly shared misconceptions and...
Financial Times  Jun 16  Comment 
World’s biggest bullion consumer to play big role in daily benchmark
Forbes  Jun 12  Comment 
I have been in and around the benchmarking and benchmarketing scene for 25 years in the PC, server, and now smartphone and tablet markets. Benchmarks have been on a cyclical nature for years and the cycle is fairly predictable. Benchmarks cycle...




 

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