alt Hacker News> The market, broadly, never priced in a rebalancing of the S&P 500
And if you had seen it what would have that pricing looked like?
> The market, broadly, never priced in a rebalancing of the S&P 500
And if you had seen it what would have that pricing looked like?
> if you had seen it what would have that pricing looked like?
Look up rebalancing trades, or, less graciously, rebalancing front running. If the index is going to rebalance to include a new entrant, you'll see the other components trade down in anticipation. It's a very tight signal, and it wasn't present to any measurable degree for the S&P 500.