David John MarottaDavid John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
Host: What is the FTSE Index?
David Marotta: The FTSE Index is a collection of about a 100 companies that are all traded in the London Exchange. So, this is Great Britains equivalent of the S&P 500.
Host: What is the Nikkei 225 index?
David Marotta: The Nikkei 225 is Japan's Index that trades on the Tokyo Exchange. Its the equivalent of the S&P 500 for Japan. Japan went through their own bubble. They reached a peak in 1989, this was back when everyone thought that Japanese were going to take over the world, and from 1989 their decline was very long and very slow and they lost about 78% of their value on the Japanese Exchange.