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It seems likely that someone could make some decent money shorting stocks before they leave the index funds as well.
by jobu 11y ago
It seems likely that someone could make some decent money shorting stocks before they leave the index funds as well.
- dotnetchris 11y agoMuch riskier proposition because you have no idea of the timeframe of WHEN their positions will be divested. Your margin might get called before it happens and you lose or lose alot. With the long position buying the stock prior to its entry to the index you have a much more reliable indicator that you'll make profit. Honestly the simplest thing to do is just monitor the big houses and whatever they do en masse do the same. Most giant purchases have to be announced and 10M shares aren't just bought on a whim.