Re:Stocks post best annual gain in 6 years with the S&P 500 ...
by perl4ever on Tuesday December 31, 2019 @08:06PM
(#21925922)
Some things are more volatile than others. Since nothing can increase in price faster than inflation forever, there's no point in including the volatile things in your index. This is why inflation indexes commonly leave out energy. People say "but everything uses energy!" as if this was a problem - yes, everything uses energy, so the long-run increase in energy prices will be reflected in everything else, so it doesn't need to be explicitly included.
[ Parent
| on HN ]