But it is historic performance that is being tracked...in other words the weighting to financial is now lower because financial has had a crap month BUT when financials started collapsing their weight would have been high so an ETF would have been badly hit by the decline of financials.This is one of the characteristics of index funds/trackers. Outperforming sectors/stocks gain increasing weightings in the index while the weighting of underperforming sectors falls.
First of all the ISEQ is very heavily biased towards banking and construction compared to other larger broader-based indices.Why is the ISEQ being hammered so disproportionately? Construction and banking seem particularly badly affected but are we to believe that AIB have same / greater exposure to the American mortgage mkt and subprime woes as the big American banks?
Well, here's one possible explanation from this morning's Irish Times:... it is easier to adduce reasons for the mark up of Irish shares in recent years - increased profitability - than to point out what explains a 30% fall in recent months when other markets apparently more exposed to risk have fallen marginally if at all.
Market Abuse (Directive 2003/6/EC) Regulations 2005
(‘the Market Abuse Regulations’)
between the Financial Regulator and
Penfield Enterprises Ltd and Mr John Mulcahy (‘the publisher’)
The Financial Regulator has concluded a Settlement Agreement with effect from 30 October 2007 with Penfield Enterprises Ltd t/a The Phoenix magazine and the publisher in relation to breaches which occurred of the disclosure requirements in relation to recommendations with respect to financial instruments included in Regulations 18 and 21 of the Market Abuse Regulations.
The matter has been settled on the basis that the breaches are admitted, a fine of €5,000 has been imposed and new measures are to be introduced by the company to support compliance with the Market Abuse Regulations in the future.
Hi Brendan, I was replying to stanbowles quote of a Davy report saying the big 4 in Ireland represent good value and his "buy, buy, buy" recommendation.yoganmahew
Please reacquaint yourself with the Posting Guidelines.
Do not discuss the valuation of individual shares. TYoung's use of a company to illustrate a point is ok.
Discussing financial shares generally is ok.