Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6943316468621094912
Why #Stocks Go to Zero, But #StockMarket Doesn’t Go to Zero? Here is One Stock That Just Went to Zero, Many of You Know Revlon Inc.: Cosmetics giant #Revlon files for #Chapter11 #bankruptcy protection: https://lnkd.in/guYe2edU :
Ever wondered: Why #StockMarket Doesn’t Ever Go To Zero: Because the Basket of Stocks in the so called #StockMarket #Indexes: #DowJones, #SandP, #Russell and others that everyone follows keep changing. Here is one of yesterday’s perceived stalwart #stock, that has been in and out of such indexes more than once: GE: https://lnkd.in/gZgmXA7E:
How Many of Original #Stocks Are in the #DJIA #Stock #Index: https://lnkd.in/gdCGnDe3 : Many of you won’t recognize most or any of them… So remember that when you next think of #DJIA.
How Many of Original #Stocks Are in the #S&P #Stock #Index: https://lnkd.in/gm8kztFF : A quick search will show: 94 of the surviving firms are still in the S&P 500 index, 26 are #publiclytraded #companies not in the #index, and five are in #bankruptcy #proceedings.
How Many of Original #Russell Are in the #Russell #Stock #Index: Better yet, 2022 Russell Index Rebalancing: What You Need To Know: https://lnkd.in/g5BVnwDb : Every year on the fourth Friday of June, the Russell 1000, Russell 2000, #Russell 3000 and other Russell #indexes are reconstituted.
ALSO, EVER WONDERED WHY: The day of the annual #Russell #reconstitution has often been one of the highest-#volume #trading days of the year, largely thanks to #institutional #investors and #funds that track the Russell indexes adjusting their #holdings to reflect the updates. Check out #Stocks #WindowDressing: https://lnkd.in/g_yb3KQC :
Add to #WindowDressing, #StockBuyBacks: https://lnkd.in/gi9TAdPN and #EarningsManagement: https://lnkd.in/gni5Q6AW , etc. and you start to #make #better #sense of the #Stock #Valuation #Formulas in your textbooks applied by most often without such thinking.
#AI #CommonSense #Science #Statistics:
In Search of #Meaning:
#CommonSense Wins! Alas, AI Can’t Help You There!
So, ANYTIME, ANYONE talks about #STOCKMARKET #TREND OVER LAST 100-yrs or even 500-yrs – one must #reflect and #ponder what it really means and does it #MEAN ANYTHING at all – Does that stock analysis apply to ANY stock of ANY index you are seeing TODAY!
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