The Long Homeostatic Cycle

摘要

With huge sums of money being poured into the stock market each month, often as investment for retirement, it is important to remove as much uncertainty as possible from the fluctuation of stock prices. Without investing in foreign stocks, the widest distributions of investments are performed by stock index funds that track a major stock market index, such as the Dow Jones Industrial Average. An investment strategy based on a stock index hedges against the rise and fall of particular economic sectors as well as the price movements of individual stocks. Instead, a stock index tends to track the performance of corporate America as a whole.