An index is essentially something that says that these key stocks represent a really good view of what the whole market is actually doing. The Dow Jones Industrial Average was created in the late 1800s and tracks 30 industrial stocks. S&P 500 started, I think, in 1926 and it is 500 of the best companies in the country,. And those 500 companies represent the market.
You have different options when it comes to investing. Phil discusses the realities of mutual funds, hedge funds and indexes. For show notes and more information visit www.ruleonepodcast.com
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