In any given year, Standard & Poor’s must find a dozen or so new companies to include in its vaunted S&P 500 index.#-ad_banner-# Existing components invariably get acquired, or stumble so badly that they are disinvited from this select group. Getting a tap on the shoulder from S&P is great news, simply because the billion-dollar S&P 500 index funds must immediately buy their shares to give them a proper weighting. Read More
In any given year, Standard & Poor’s must find a dozen or so new companies to include in its vaunted S&P 500 index.#-ad_banner-# Existing components invariably get acquired, or stumble so badly that they are disinvited from this select group. Getting a tap on the shoulder from S&P is great news, simply because the billion-dollar S&P 500 index funds must immediately buy their shares to give them a proper weighting. Analysts at Credit Suisse recently gave the topic some thought, highlighting 10 strong candidates. Later on, I’m going to add another eight of my own in a moment. And in part two of this series, I’ll cite the three most appealing stocks in the group on a purely fundamental basis. What’s In The S&P 500? Many might suspect that Standard & Poor’s simply chooses companies with the largest market values for inclusion in the index. But… Read More