Index Funds - An Ongoing Study
A few weeks ago, I posited that the popularity of Index Funds could be increasing the volatility of the markets.
This is a testable hypothesis to a point. We can at least see a correlation, and see if volatility has grown with Index Fund investment.
Since it looks like I'll have a little extra time on my hands for the next few weeks, I'm going to go ahead and use public information sources, pull down the prices for the Dow Jones Industrials since 1/1/1970, and see if any of this works.
Obviously, this is a multi-step process, so I invite the readers of this blog to check the math, check the methodology, and work on this along with me.
Posted by joshuasharf at February 28, 2005 03:55 PM
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