Bloomberg: “Active Management Is Paying Off for the S&P 500 Index Keepers”By admin_45 in IN THE NEWS
Excerpt from Bloomberg quoting DataTrek co-founder Nick Colas:
.... "Fast-forward to now, and no such housecleaning has occurred. Instead, loath to create disruption, the keepers of the benchmark exhibited patience, waiting to see how the market evolved. Today, that tolerance is looking prescient. After the S&P 500 surged 25% since mid-May, the total number of companies whose businesses or market fundamentals put them at serious risk of ejection has fallen by half, to around 15, says Nicholas Colas, co-founder of DataTrek Research.
What’s more, the companies most at risk of ejection have been the stars of the recovery. They’re up 87% over the span, nearly 30 percentage points more than the S&P 500 itself.
“The rally in, well, everything since May has really taken the pressure off the S&P committee to revisit the index,” said Colas"....
Read the full article here on Bloomberg!