Investors need to concentrate on the performance of the in vestments they own and not
the overall market indexes such as the Dow and the Standard & Poor's 500, Hunt said.
Index funds track
an overall market index by maintaining an appropriately weighted portfolio that mirrors the index.
Passive investing, diversification and
overall market index as a benchmark for performance are all a result of a blind faith in the EMH.
It is seen quite often that the stock of a particular sector (say, IT or pharmaceuticals) outweigh
the overall market index.