A blog of my thoughts on investment, mostly following a value investing & fundamental investing approach.
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Monday, November 14, 2011
Market Cap vs Fundamentals - How Weighting Affects the S&P 500
Here is a chart showing how various metrics change on the S&P 500 as you modify the weighting technique (the S&P500 nominally uses weighting by market cap of course). Some of the weighting methods allow negative values (which matches to shorting I guess), but that's not a major effect.