Dividend Index vs Revenue Index: To be used as a Fundamental Risk Index to remove the impact of inherently over/under valued stocks observed within the market. In neutral and negative markets: it is appropriate to use dividend index as a risk benchmark In positive markets: it is appropriate to use revenue index as a risk benchmark Could anybody shed some light on this? Googling did not help much.
Beats the heck out of me. Which kind of market are we in now, btw?
I think what it’s trying to say in a convoluted way is that such a strategy would pick value stocks during neutral and down markets as say top 100 stocks in a dividend index are more likely to have value characteristics. In positive markets, the strategy would focus on a revenue index where the constituent stocks are more likely to have growth characteristics. This seems like the logical explanation to me but I can’t be sure. I have never seen this before. It seems like an added layer of complexity on top of the already complex world of stock picking. Has anybody come across this before?
bumpity bumpity bump Somebody oughta know more about this…