Ask HN: Passive income ideas for solo developers?

Re:Ask HN: Passive income ideas for solo developers? by tcbawo on Sunday June 18, 2017 @10:10PM (#14584195)

The thought is that with index funds, you're invested in enough of the market that you don't have to pick winners and losers and you get rebalanced as well.

It would be interesting to study the market cap effect of going from #501 to #500 in the S&P ratings.

If you think the entire market is overbought, then they might not provide the best returns over the short term. However, most people are very bad at timing the market or picking the strongest companies that will thrive in a down market.

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Re:Ask HN: Passive income ideas for solo developers? by ksherlock on Sunday June 18, 2017 @10:33PM (#14584260)

There S&P 500 is selected by a committee so there is no #501.

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Re:Ask HN: Passive income ideas for solo developers? by tcbawo on Monday June 19, 2017 @10:22AM (#14587164)

My point is that there is probably a bump going in and a hit falling out. This wikipedia article (https://en.wikipedia.org/wiki/List_of_S%26P_500_companies) shows the additions and removals. I am curious about the distortive effects of demand from the S&P 500 as a proxy for the effects of passive investing.

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Re:Ask HN: Passive income ideas for solo developers? by tanderson92 on Sunday June 18, 2017 @11:20PM (#14584430)

Technically there are 505 due to dual-share classes for 5 of the securities in the index.

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