Product Details
CPMKTS measures the capital markets on a consolidated basis. Rather than further subdivide the market as other indexes do, CPMKTS views the capital markets on a broader basis and therefore includes stocks, bonds and money market instruments. It satisfies the needs of both professional and lay investors for a measurement tool for mixed or blended portfolios and provides the basis for a wide variety of investment instruments.Other indexes within the CPMKTS family measure sub-segments of the market.
The Amex also publishes sub-indexes CPMKTE, CPMKTB and CPMKTL, tracking equities, bonds and liquidity, respectively.
The CPMKTS and its family of indexes were created to meet the market's need for:
- More sophisticated measures of capital market performance
- Improved measures of risk and return
- Better tools to make asset-allocation and investment decisions
- Comprises stocks, bonds, and money market instruments from the US investment grade capital markets.
- Component fixed income securities and money market instruments are revised monthly. Component equity securities are revised quarterly. All weightings are revised monthly.
- Completely transparent rules-based selection criteria.
- Has documented demand from investment professionals and individual investors as benchmark tool and as a basis for investment product basis, as documented by Harris Interactive/Quest Business Agency Market Research
- Delivers capital market return for capital market risk
- Replicates the capital markets' actual asset allocation
- No known competitors in measuring the broader capital markets' performance
- Back-tested to December 1979 using the same methodology employed for ongoing revisions and calculations.
How it works
Dorchester [www.cpmkts.com] has collected over 30 years of historical data—including government statistics and market changes—which now are stored in the company's computers (two systems in Houston and a redundant system in Chicago). Each day 200 million pieces of information are added.The data is organized, processed and updated every 15 seconds. This statistical selection removes the subjectivity associated with other indexes. It accurately represents the history, mix and behavior of the capital markets.
How the index is calculated
- Real-time and historical data have been acquired from multiple financial and government sources.
- Data is organized, normalized and processed.
- Dorchester's CPMKTIG is formulated, using all the investment-grade capital market assets and allocations.
- CPMKTS is the real-time index representation of the entire investment-grade U.S. capital market as derived from CPMKTIG and calculated by Dorchester and the AMEX.
- The AMEX publishes CPMKTS and its component indexes on the "tape" every 15 seconds.