For years there has been a serious disconnect between investors and indexes — which has led to a great deal of bad benchmarking.

Because the S&P 500 is so well publicized, it’s not uncommon to see it used as a performance comparison, or benchmark, for any number of investment portfolios. For instance, the S&P 500 is positioned all too often as the performance comparison for a diversified portfolio that contains stocks, bonds and diversifiers (such as real estate and commodities).

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