The pending addition of Tesla to the S&P 500 makes the rebalancing act for index funds particularly interesting this time around.
Funds that track the index will be forced to reallocate capital invested elsewhere to buy Tesla, and that won't be easy.
Long-term investors need to understand that an over-reliance upon tracking funds will ultimately exacerbate volatility, and once everyone is standing on the same side of the ship, destabilize financial systems.
Here's why some types of financials will look much more attractive after Tesla races to the S&P 500.
Look for the DIA to make a move higher.
Here's a way to play a pullback in the IWM ETF.
The headlines about increased Covid-19 cases are unlikely to be a significant market factor as we wrap up this week and enter next week.
Economic activity is increasing, slowly but surely, and it appears the upstroke of the V recovery is only in its early stages.
We are on the cusp of a decline, so anticipate the negatives and get your portfolio pandemic-recession-ready.
Think you're diversified? Understanding what you are investing and trading in is key.
The problem for index fund owners is they own all three buckets and there are a lot more companies in the third bucket than in the first two.
The S&P 500 is no longer a diversified index.
In addition to hopes of fiscal stimulus, there are also some positives in the coronavirus statistics that are producing increased optimism about how long the crisis will last.
Let's explore a concept I have been loath to consider.
A year from now, this coronavirus-inspired market drop could be viewed as a beautiful buying opportunity.
It is the covered call, and it can be used in trading ETFs and individual stocks.
Now is not the time to be aggressive long or short.
Tesla and even tech stalwart Apple are sporting valuations that appear high relative to their growth prospects.
Most market participants are obsessed with the level of the S&P 500, but look under the surface: The "safe-haven" trade has started to be unwound.
Calling for a correction at this point is easy, but it comes with a sizable opportunity cost. Ignore the anticipatory bears and stay focused on the individual stocks.
Many stocks need rest and small-cap earnings season is rocky, but that doesn't mean the indices are going to see significant downside.
The Federal Reserve was slightly hawkish overall at the October FOMC meeting, and there should be a dollar bullish bias.
Despite the rhetoric from on high, it is possible to find good stock picks in this market.
Investors looking for Asian real estate exposure can get both equity gains and yield from Asia-focused REITs.
No one ever thought when we created a stock market that there would only be buyers of stocks in an index.
There are times when the indices fail to tell the story of what is really going on.
The S&P 500 is approaching key resistance levels.
The indices are in good shape technically, although there was choppy and inconsistent action under the surface Thursday.
Good mood takes markets higher, but buyers are so anxious to put money to work that they're throwing it into indexes, rather than individual stocks.
The recent upside breakout in gold is likely telling us something important about where we want to be invested right now.