Latest Insights on SPY
The Stock Market Is Losing Its SkittlesAfter finally receiving a decent snowfall in Ohio this weekend, I did what I normally do. I took my kids sledding at a nearby park. Down the hill, then charging back up … rinse and repeat. I did my best to keep up with them, but I eventually ran out of gas, while I marveled […]
Mean Reversion: The Simplest Strategy for Sell-OffsOther traders may panic-sell or go bargain hunting — but Mike Carr uses this mean reversion strategy to profit from a sell-off.
The Fed’s Double Game Puts the Hurt on Growth StocksTwo powerful forces have closed in on growth stocks: The Fed and the pandemic. But, what does this mean for the rest of the market? Are we seeing a dot-com peak followed by a waterfall decline … or is this just a rotation that smart investors can profit from? In today’s Your Money Matters, Ted Bauman and Clint Lee discuss the fall of growth indexes, the Fed’s tapering timeline and how you can protect and grow your portfolio.
Prepare for the Reversal of the Perpetual Motion Machine“Active managers” are hedge and mutual funds that constantly trade in and out of stocks to outperform the market. The opposite of active management is (you guessed it!) passive management, also known as indexing. An index fund holds stocks from a specific segment of the market, or index. Each stock is held in exact proportion to its weight in that index. The most common form of indexing is exchange-traded funds (ETFs). If you want to invest in the S&P 500, for example, you buy the SPDR S&P 500 ETF Trust (NYSE: SPY). As the index performs, so the fund performs. If active managers are supposed to be so good, why do they keep underperforming the market and passive index funds? And what could change that? The answer will surprise you…