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Because most stock benchmarks are weighted according to market capitalizations, the most successful companies with the largest stock market values have the most sway on indexes.
Jasper Lawler, market analyst at CMC Markets, said: A late bout of weakness in mining shares left the FTSE 100 significantly underperforming other European stock benchmarks.
Stock benchmarks and currencies in developing countries like India and Indonesia have been hammered as funds flowed out of their markets in anticipation of a reduction in stimulus from the Federal Reserve.
The stock benchmarks in Hong Kong and Shanghai headed down at midday.
Martin thinks the 2% average real GDP growth of this expansion will likely continue for the next decade and in the long run, stock benchmarks can't grow more than the economy in which they operate.
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The United States stock benchmark has not been that low since Oct. 27 , 1997
The fund has managed a respectable performance, outperforming its MSCI EAFE world stock benchmark during the October and November turbulence.
Pioneered by the financial analyst and money manager Robert D. Arnott in 2005, the Research Affiliates stock benchmark FTSE RAFI US 1000 returned 19.46 percent for the last three years, through 2011, and is up 1 percent over the last five years, which included the 2008 financial crisis.
For such a diversified portfolio, a single stock benchmark would not provide a meaningful comparison.
The traditional growth stock benchmark of fair value P/E equals growth rate would put the P/E at 100.
Shares of Rio Tinto added 0.2% to 52.48 Australian dollars ($42.02) while the country's stock benchmark S&P/ASX inched up 0.1% to 4,000.80.
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