Posts Tagged ‘Bio’
Measuring Market Performance at Asset Strategies Portfolio Services
George Vitta, President of Asset Strategies, gives advice on looking at market index performance. “Investors are mislead by the financial press on a daily basis. There is too much focus on the Dow Jones Industrial Average (DJIA) and whether it returns to 10,000 as it recently did, causing us to lose sight of the bigger picture. While the performance of the DJIA continues to be influenced by not only economic and corporate reports, natural disasters, and domestic and foreign political events, this stock index is computed from the daily price change of 30 very select publicly held U.S. companies. Several of the 30 companies are not even part of the U.S. industrial market sector. Further, unlike other stock indexes whose daily performance is based on the change of total market value of each company, the DJIA’s daily performance is based on the change in the price per share of each of the 30 stocks. This means the entire direction and the magnitude of the indexes daily performance can be unduly influenced by one, two, or simply a few stocks.”
A truly meaningful and more accurate approach, which parallels the philosophy of Asset Strategies, is to look at the S & P 500 or Russell 1000 Indices. “First, we believe that the companies represented in either of these indices is a superior representation of our diverse economy”, says George. “Second, we think the method for calculating these indices’ daily performance is more accurate than the DJIA methodology and thus gives a meaningful indication of the U.S. stock market’s daily results. Finally, we hope this critical, yet rational thinking inspires investors to stop and consider what they just heard or read for the benefit of their investment success.”
“Same Old Hope: This Bubble Is Different”
“This time it’s different” are often quoted words following a financial calamity, such as the world has been going through for more than one year. Actually, it’s not different this time, it just feels that way. For a healthy dose of 1) why we should not feel anything is different, 2) why in fact, the financial environment may be worse than the past, 3) why we are bound to repeat past mistakes, and 4) a preview of what today’s mistakes could lead to in the near future, read this article that ran in the New York Times on Septemeber 14. To read the article that George Vitta, President of Asset Strategies Portfolio Services, is referring to please cut and paste the following link to your browser.
www.nytimes.com/2009/09/14/business/economy/14bubble.html?scp=1&sq=same
George Vitta, President
- 29 years experience in financial services industry
- Provides investment advice to public, private, union, healthcare, endowment and foundation funds ranging from a few million to several billion dollars
- Founded Asset Strategies Portfolio Services, Inc. in 1992
- Authored articles on investment topics and conducts educational seminars for trusetes and plan sponsors
- M.B.A. Finance, Wayne State University
- B.A. Economics, University of Michigan
- Has served as officer and director of two foundations and a trust
- Professional Associations:
- Michigan Association of Public Employees Retirement Systems
- International Foundation of Employee Benefit Plans
- Michigan Non Profit Society
- CFA Institute
- Chartered Alternative Investment Analyst Institute
