TY - JOUR T1 - Remarks on the Calculation of Earnings in the S&P 500 Index JF - The Journal of Investing SP - 15 LP - 17 DO - 10.3905/joi.2011.20.3.015 VL - 20 IS - 3 AU - Michael Keppler AU - Xing-Hong Xue Y1 - 2011/08/31 UR - https://pm-research.com/content/20/3/15.abstract N2 - Jeremy J. Siegel questioned Standard & Poor’s methodology regarding the earnings calculation of the S&P 500 Index, arguing that it gave far too much influence to firms with big losses and low market values, and thereby gave a distorted valuation to the S&P 500 Index. While Siegel’s arguments are understandable from an investor’s point of view, his suggestions on how to address the issue are questionable.TOPICS: Mutual funds/passive investing/indexing, statistical methods, security analysis and valuation ER -