West Loop Financial LLCThe Disciplined Investor’s Worst Enemy: Tracking Error – West Loop Financial LLC https://www.westloopfinancial.com Evolutionize Site Wed, 19 Aug 2020 20:50:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 The Disciplined Investor’s Worst Enemy: Tracking Error https://www.westloopfinancial.com/2015/02/02/disciplined-investors-worst-enemy-tracking-error/ https://www.westloopfinancial.com/2015/02/02/disciplined-investors-worst-enemy-tracking-error/#respond Mon, 02 Feb 2015 09:00:26 +0000 http://evolvemypractice.com/?p=1652 Last year was a tough one for disciplined investors. Disciplined investors know that diversification is a key element of successful portfolio management. But investors who stayed the course and remained diversified were punished for it in 2014, at least in the short term. Disciplined investors will continue to be taunted over the coming weeks and...

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]]> Last year was a tough one for disciplined investors. Disciplined investors know that diversification is a key element of successful portfolio management. But investors who stayed the course and remained diversified were punished for it in 2014, at least in the short term.

Disciplined investors will continue to be taunted over the coming weeks and months by headlines touting the success of “the market” in 2014. “Which market is that?” many of them will ask.

Well, “the market” we hear about most often is the Dow Jones Industrial Average, which represents only 30 of the largest U.S. companies trading on the New York Stock Exchange. A slightly broader barometer of “the market” is the S&P 500 index, a benchmark tracking 500 of the largest U.S. stocks. In this case, “the market” could more accurately be translated as “the U.S. large-cap stock market.”

Read the rest of the article on Forbes.

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