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Index Funds Book
Index Funds: The 12-Step Program for Active Investors (Hardcover)

by Mark T Hebner
ISBN: 0-9768023-0-9




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Harry M. Markowitz explains Portfolio Theory: what it is and how it's used from a top-down model from the asset classes to the investments. He covers Standard Deviation, Variance, Correlation, and Covariance. Markowitz also explains what happened in 2008 with Modern Portfolio Theory. (39 Min.)

Harry M. Markowitz - Portfolio Theory and 2008

Mark covers historic recovery patterns and probability of future returns, the risks and returns that come with big government, the role of commodities in your investments, the pros and cons of inflation-hedging securities, and an investment strategy that has been highly successful historically. (92 Min.)

Mark T. Hebner - Big Losses, Big Government and Your Investments

Harry Markowitz gives an IFA Exclusive Presentation on Portfolio Theory Vs. Financial Engineering, and Their Roles in Financial Crises. Markowitz explains the difference between Portfolio Theory and Financial Engineering. Markowitz also covers Black Monday (October 19, 1987), Long Term Capital Management, and Now. (47 Min.)

Harry Markowitz - Portfolio Theory Vs. Financial Engineering, and Their Roles in Financial Crises

The first step on the index funds journey is to recognize active investor behavior. If all investors were lined up in a row, could the active investors be identified? Active investors actively engage in stock picking, time picking (market timing), manager picking, and style picking.

Step 1: Active Investors - Podcast Interview with Mark Hebner

Mark Hebner explains the Nobel Laureates. Mark suggests a higher power of non-biased information from academics who carefully analyze data and have that data peer reviewed before it is published. Mark identifies the five basic concepts of the Modern Portfolio Theory.

Step 2: Nobel Laureates - Podcast Interview with Mark Hebner

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February Major Index Returns

IndexFunds.com Staff
Friday, March 01, 2002

The Dow Jones Industrial Average was in the black for the month of February. Internationally, the Dow Jones indexes that cover world and European markets were down, while Asia closed up in February.

Index
Feb. ret.
YTD
Since 9/11/01
Dow Jones Industrial Average
1.87%
0.84%
5.21%
Dow Jones EURO STOXX 50
-1.24%
-4.76%
5.35%
Dow Jones Asian Titans 50
1.85%
-3.82%
-8.88%
Dow Jones Global Titans 50
-1.85%
-6.00%
-0.43%

*Source: Dow Jones Indexes

Below is a list of the biggest sector winners and losers in February from around the globe using the Dow Jones indexes.

United States
Winner:
Dow Jones Basic Materials
5.00%
Loser:
Dow Jones Technology
-14.38%
Europe
Winner:
STOXX Total Market Index Energy
4.12%
Loser:
STOXX TMI Telecommunications
-6.85%
Global
Winner:
DJ Sector Titans Basic Resources
6.31%
Loser:
DJ Sector Titans Technology

-11.00%

*Source: Dow Jones Indexes

Here's how the Russell indexes performed in February.

Index
Feb. returns
Russell 1000
-2.14%
Russell 2000
-2.84%
Russell 3000
-2.19%

*Source: returns based on Reuters data

Finally, more returns for Standard & Poor's domestic indexes.

Index
February
3 Months
YTD
1 year
S&P 500
-1.93%
-2.51%
-3.36%
-9.51%
S&P 500/Barra Value
-0.90%
-2.15 %
-3.61%
-12.55%
S&P 500/Barra Growth
-2.95%
-2.96%
-3.10%
-6.84%
S&P MidCap 400
0.12%
4.75%
-0.40%
2.71%
S&P MidCap 400/Barra Value
2.37%
8.80%
2.35%
8.57%
S&P MidCap 400/Barra Growth
-2.20%
0.61%
-3.21%
-2.96%
S&P SmallCap 600
-1.72%
5.85%
-0.86%
7.86%
S&P SmallCap 600/Barra
Value
-0.43%
8.75%
1.43%
10.99%
S&P/SmallCap 600/Barra
Growth
-3.09%
2.86%
-3.23%
4.42%
S&P 100
-1.78%
-3.45%
-3.49%
-11.05%
S&P 1000
-0.45%
5.08%
-0.54%
4.21%
S&P SuperComposite 1500
-1.78%
-1.75%
-3.07%
-8.20%
S&P REIT Composite
1.91%
4.63%
2.12%
18.22%

*Source: Standard & Poor's


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