NASDAQ is waiving its usual six-month waiting period to include SpaceX in its index immediately after its IPO. This forces NASDAQ-tracking ETFs, like the $385 billion Invesco QQQ Trust, to buy roughly $7 billion of SpaceX stock in one day, selling other holdings proportionally. The move is a competitive strategy to attract more investment to NASDAQ indexes before rivals like the S&P 500 can react. This forced buying may create a recurring cost for passive investors, challenging the low-cost appeal of index funds during mega-IPOs.
Michael James McDonald explains that parabolic market crashes are often followed by a significant rebound rally about six months later, similar to historical bubbles like 1929 equities and 2000 dotcom. This rebound can recover 50-60% of the losses, p...
The Nasdaq 100 rebounded with a 1.5% rally after a volatile session, avoiding its worst sell-off since March. Despite spikes in individual tech stocks and semiconductor volatility, the S&P 500's VIX index fell, presenting a cheaper hedging opportunit...
Kevin Warsh's appointment as Federal Reserve chairman marks a shift toward tighter monetary policy and reduced government intervention. His background suggests a focus on shrinking the Fed's balance sheet and limiting quantitative easing, which could...
Since late March, the stock market rally has been selective, with SPY and QQQ reaching new highs while the Dow lags behind. The author expects a possible mild pullback in SPY in the coming weeks, potentially triggered by geopolitical events like the ...
