Canada Settles Issues; America Belabors Them

January 1, 2007

SHERBROOKE, Quebec — As night falls and a frigid December wind blasts across Quebec’s Eastern Townships, the 100-foot-tall illuminated cross atop Mont Bellevue commandeers this small city’s skyline. The sight of it startles me. Just an hour earlier, I was standing at the mountain’s base, watching snow guns furiously try to compensate for nature’s lethargy in time for an approaching weekend. Mont Bellevue is a city park, 900 vertical feet …

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A Fundamentally Better Stock Index?

January 1, 2007

Investors should avoid the new “fundamentally weighted” equity indices launched recently in an effort to outperform widely used indices such as the S&P 500 Index. Until some design flaws are addressed, there are much better alternatives. The latest debate in the world of indexing is market capitalization weighting vs. fundamental weighting. Market capitalization is determined by multiplying the number of shares outstanding by price per share. The result is the …

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