S&P/TSX Composite Index). We have to be careful with this concept though, because a large company and/or large industry can continue to grow quickly for extended periods of time before they do slow. Many people even thought Google’s growth would have slowed much quicker than it has. In any case, the natural forces at play in the economy, combined with my belief in reversion to the mean (discussed as Rule #4 on my home page), form the basis for two of my most basic investment strategies: (1) equal weighting large, mid-size and small companies in a portfolio and rebalancing periodically and (2) equal weighting sectors and rebalancing periodically as opposed to investing according to the market cap and sector weights of the major indices. These natural forces also apply to the global economy as a whole. Emerging and developing economies will naturally experience higher growth rates than developed economies because they have a much more significant potential for development. For example, IT companies serving a country that has yet to roll out IT infrastructure to the extent that North America has will naturally experience faster sales growth than a company serving a country where most IT infrastructure has already been rolled out. Even just the sheer force of a large and fast-growig population entering the labour force of an industrializing nation can be very powerful and create rapid economic growth. Most of the non-developed world is agressively pursuing development to improve their population’s standard of living, as can be seen in the rapid growth of the BRIC countries (Brazil,