The S&P 500 Index is a Farce.

Discussion in 'Economics' started by short&naked, Feb 18, 2009.

  1. Think about this. S&P simply cuts any company it deems as junk (and they are mostly right) from the index and replaces it with another healthier company. This past week they replaced ARM with PNRA. ARM is now trading at around .60.

    This means that the S&P 500 cannot be a good long term gauge of market health.

    Of course, this is good news for long term investors. Why pick stocks?