Drastic makeover looms for S&P 500

Re:Drastic makeover looms for S&P 500 by phkahler on Saturday May 16, 2020 @11:47PM (#23209415)

What percent of public stocks are owned by funds in 401K accounts? Remember, price is driven by supply and demand. So long as there are more buyers than sellers the prices are going to keep rising. People blindly put money in funds every month. fund managers have to spread it around. Or in the case of index funds spread it by fixed formula. Sure there are good/bad companies and good/bad times, but so long as people keep pushing money in things will generally go up.

If CoViD had put white-collar people out of work, there wouldn't be any buyers and things would tank.

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Re:Drastic makeover looms for S&P 500 by crabasa on Saturday May 16, 2020 @11:53PM (#23209436)

This is overly simplistic and, pretty damningly given the topic, fails to account for the market drop between Feb 20 and Mar 20.

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Re:Drastic makeover looms for S&P 500 by phkahler on Sunday May 17, 2020 @08:51PM (#23217033)

When the traditional investors (as opposed to the automatic ones) sold in volume?

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Re:Drastic makeover looms for S&P 500 by anonu on Sunday May 17, 2020 @06:52AM (#23211113)

I think this is a great point. Retirement dollars come in a steady stream and but a consistent bid in the market. If that money flow stops, what are the implications for that buying impact. You could dig further and look at unemployments rise and see whether those who have lost their jobs typically save for retirement.

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Re:Drastic makeover looms for S&P 500 by qppo on Sunday May 17, 2020 @06:24PM (#23216057)

It did put white collar people out of work.

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