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Very few topics have generated as much controversy over the last several
years as fundamental indexing. We had the opportunity to review an
unpublished paper by economist and mathematician Michael Edesess, and we
believe it offers the most persuasive
arguments thus far rejecting the notion that fundamental indexing can
outperform cap weighted indexing.
The US wind power industry grew by 45% last year,
representing one-third of all new generating capacity. A research paper by Janus looks into alternative energy investing, discussing
the opportunities in three segments - solar, wind, and ethanol.
New academic research examines the role played by luck versus skill in active mutual fund management.
Evidence of skill among active mutual funds has declined over the 32-year
period studied, particularly since 1990. We offer our opinions on the
reasons behind this.
In a follow-up to last week's story on the BRIC economies, we look at the consumer engines in each of the four
countries, and whether a case can be made that they can be
decoupled from the US economy.
We have a correction to our
story last week on water-based investing,
and a letter to the Editor from a Florida-based advisor on the subject of
the housing crisis.
Lastly, we highlight some recent Advisor
Market Commentaries.
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