Have you guys heard about the upcoming rule changes to S&P
that will affect structure? Apparently there will be an upper limit
to the concentration level of any single unit / company. Kind
of a big deal in a passively managed world but not getting
much press. I don't have a handy conspiracy theory ready to explain
why not, but it likely contributed to last week's volatility.
I think it's absolutely the right direction, which is kind of
shocking in itself (I'm not used to markets making decisions that
will benefit the masses over the dominant giants)
I guess I didn't land the plane - this rule change should
make the FANG, MAG 7, etc style investment / trading styles less
effective. Of course, the upper limit could be some ridiculous
number just thrown out to appease regulators...then all bets are
off (well, not off...all bets back on largest cap names that will
get bigger simply because of passive flows)
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Have you guys heard about
Posted by bthefnd on 8th of Sep 2024 at 12:00 pm
Have you guys heard about the upcoming rule changes to S&P that will affect structure? Apparently there will be an upper limit to the concentration level of any single unit / company. Kind of a big deal in a passively managed world but not getting much press. I don't have a handy conspiracy theory ready to explain why not, but it likely contributed to last week's volatility.
I think it's absolutely the right direction, which is kind of shocking in itself (I'm not used to markets making decisions that will benefit the masses over the dominant giants)
I guess I didn't land the plane - this rule change should make the FANG, MAG 7, etc style investment / trading styles less effective. Of course, the upper limit could be some ridiculous number just thrown out to appease regulators...then all bets are off (well, not off...all bets back on largest cap names that will get bigger simply because of passive flows)