Article: Taking stock of market-cap-weighted indexes; Numeric Investors exec questions their validity.(News)

Byline: Joel Chernoff

SAN FRANCISCO - Everybody knows that investors in the U.S. stock market took a bath in the four years since the technology-stock bubble burst. Right?

Wrong. Yes, the broad-market Russell 3000 index lost more than $2 trillion of market value in the four-year period ended March 31, generating a cumulative return of -17.6%. Measurements from other indexes were worse: the Standard & Poor's 500 stock index returned -20.2% during the period, while the beleaguered Nasdaq Composite Index returned -55.7%.

But the story for the average stock was vastly different, according to Langdon B. Wheeler, president and chief investment ...

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