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Benchmark

0 bytes added, 21:13, 22 April 2008
==Kinds of benchmarks==
===[[Stock index]]Index===National [[stock-]] market indexes like America's [[Dow Jones Industrial Average]], Japan's [[Nikkei 225]] or Germany's [[DAX]] are the best known and most widely used benchmarks for equity investors. But sector-based indexes like the [[small cap]] [[Russell 2000 Index]] and the [[NASDAQ Biotechnology Index]] are growing in popularity, while global-market investors prefer [[Morgan Stanley]] Capital International's three-continent [[EAFE Index]].
===Bond indexIndex===[[Bond]] markets also employ different indexes as benchmarks for different markets and sectors. The widely-used [[Lehman Brothers]] [[Aggregate Bond Index]], an accumulation of several bond market indexes, forms a traditional benchmark for bond funds.<ref>{{cite web|url=http://www.axaonline.com/rs/3p/sp/5056.html#what|name=Benchmarks|org=AXA Online|date=April 14, 2008}}</ref>. Yields on 10-year U.S. Treasury [[bonds]] are considered one of the strongest benchmarks for long-term bond performances.
===Economic indicatorIndicator===
Some investors look beyond the markets themselves to the broader national or international economic outlook for performance gauges. [[Short-term interest rates]] are probably the most commonly-employed indicator benchmark but quarterly employment, productivity and [[GDP]] numbers are all valued by traders and investors as 'reality check' benchmarks.
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