A capitalization-weighted index explicitly links the weight of a holding to its price, so the more expensive a stock gets, the bigger its weight in your portfolio, says Research Affiliates' Rob Arnott.
As we're likely to see political squabbles and slow growth continue, investors will be well-served by sticking with defensive firms that have solid dividend-payout records and competitive advantages, says Morningstar's Josh Peters.
Since the taper talks began, conditions have improved for dividend investors, who can now buy quality names without being vulnerable to long-term interest-rate spikes, says DividendInvestor editor Josh Peters.
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