To better track and compare the HBSI with other indexes, HispanTelligence converted the nominal value of the indexes on a base equal to 100 starting in January 2002. When the figures from the HBSI are compared with figures from the Dow Jones Industrial Average, the S&P 500, and the Nasdaq over the last year, the Hispanic economy is shown to have surprising resilience. Although all the indexes were down in 2002, the HBSI was down much less than the others. The HBSI beat the Nasdaq by 18.73 points, the S&P 500 by 9.94 points, and the Dow by 3.69 points (see table and chart, "U.S. Stock Market Indexes Compared").
While the HBSI is a much smaller index than any of the others, and thus fluctuates more depending on the performance of a small number of companies, the performance of the index in 2002 reflects the underlying strength of the U.S. Hispanic economy, which has grown faster than the U.S. economy as a whole for the past decade. Even in the face of a bear market, the factors that underpin Hispanic growth – demographics, higher education and income levels, and vigorous business formation – remain relevant indicators of strength.
In the future, events may alter the component companies of the HBSI. For example, the pending merger between Univision and Hispanic Broadcasting may cause a reduction in the number of HBSI companies. New initial public offerings of Hispanic-owned or Hispanic-serving companies also will change the mix. When new shares are issued, or if companies have spinoffs, stock splits, and/or dividends issued, the index will change according to the methodology established by S&P. For more information, see "S&P 500 Index Methodology," available online at S&P 500 Index Methodology Section 3 (www.spglobal.com/ 5sec3.pdf).
A monthly update of the HBSI will appear in each issue of Hispanic Business, together with commentary on market developments and players. For daily updates of the HBSI, visit the magazine’s Web site at www.hispanicbusiness.com.
Stock research by Research Assistant Michael Caplinger and HispanTelligence staff.
Hispanic Business Inc. believes its data and text to be reliable, but accuracy is not warranted or guaranteed. Hispanic Business Stock Index (HBSI) content may include facts, views, opinions, and recommendations of individuals and organizations deemed of interest. Hispanic Business Inc. does not guarantee the accuracy, completeness, or timeliness of, or otherwise endorse, these views, opinions, or recommendations, give investment advice, or advocate the purchase or sale of any security or investment.
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