You know, to be honest with you I don't recall rebalancing the Indices to ever have much effect. Been so busy I do not even know what is going in and what is going out. On the SPX stocks like GE, MSFT, CSCO and a few others dominate so thoroughly that moving some out and others in does not appear to do much.
Having said that, there was a line of thought on the spoo thread last time ... perhaps the end of March, maybe the end of June ... that suggested that the addition of a stock like Yahoo screws the Index up to the downside because of the re-apportionment. YHOO being large enough to divert monies from elsewhere into YHOO. I forget the exact logic behind it; my mind is elsewhere these days.
Even now, I'm dashing in from looking at a place I may move my mother to and then out to get off 1040ES statements at the Post Office. However, if you post to Scott he had some comments on it a few months back as I recall. It was a fairly persuadable argument but offhand I do not recall the precise logic. As I recall it was a short-term phenomenon however.
Someday, I hope to return to those Days of Yore, when I shall have time to do nothing but make absurdly pithy remarks but at the moment I do not even recall when I last changed my socks.
Come to think of it, I'm not wearing socks. Perhaps I used them to check the oil in the kid's car.....don't remember. |
