Krugerrand
Meow
You've been saying this for months, but it's not accurate. I've explained this in my blog posts, but Rob Maurer has done the best job of explaining why this is simply not true.
If what you explain here was accurate, S&P 500 index funds would sell off stocks en masse after great earnings (to keep weight the same), and then rebuy en masse after the rebalancing. This would create massive, needless volatility and complexity.
S&P weights and quarterly rebalancings are only to account for changes to the public floats of the stocks in the index (share buybacks, share offerings, etc.).
I really wish the two groups on either side of this discussion would get a room and figure out what the answer is. It can’t be both and this isn’t a grey area. I’d actually like to know which is correct.
Okay. No. I don’t actually care about the answer, but I would like to update my forum members graph of who’s been right the most vs who’s been wrong the most.
FYI, if @Johan ends up buying the beer today I’ll be sitting on a 100 bagger. Now where is that obnoxious fellow who posted I’d be on the losing end of things if I held? Oops! Did he disappear months ago along with his options advice? Ahahaha —