Reference Index as Investment Evaluation

So, from the above it can be concluded that the index in the world capital market and financial indicators are changes that provide an overview of what has happened the market.

Thus we are able to answer the critical questions posed at the beginning of this paper. Armed with this index, which is an objective measure as a reference or comparison of the results of the investment that has been obtained, it will be a success or failure of an investment strategy can be measured objectively.

A simple example can be seen in the measurements of Figure 2. In the graphic display can be seen that the Composite Stock Price Index (blue line) on December 23, 2011 shows the number +5 percent, or moving from an index figure of 3,217.95 on December 23, 2010 and ended at 4,195.72 points at the same date in 2011. While on the other hand, the price of the shares of PT Telkom Tbk. (green line) has decreased the price by almost 10 percent.

Suppose the entire investment fund owned by an investor just buy stocks TLKM alone, it can be said the investors suffered a double loss at the end of the period. The first disadvantage is that the value of their investment funds fell by nearly 10 percent. While the loss of the second is the investor loses the opportunity to increase the value of their investment funds totaling nearly 5 percent, when it bought shares in addition TLKM in that period.

Based on the evaluation at the end of the above, it can be concluded that investors were not successful with their investment strategies. It could even be said to be “crushed fallen ladder” because he suffered the loss of his TLKM stock decline and do not realize that there are other stocks (excluding TLKM) the price is actually going up by leaps and bounds. A condition that can be avoided if the investor understands how to monitor the investment using indices that are available in the market.

October 29, 2012 В· admin В· Comments Closed
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