The S&P 500 index ETF is one of the safest bets in stock investing, and over time has an increasing likelihood of making money.
However, even over a ten year period it could have a negative return. At 16 years the probability goes to zero according to Fisher Investments
The NightShares ETF invests at the close of trading hours and sells in the morning, this only capturing the off-hours gains.
NSPY and NIWM are listed on NYSE Arca and each have an expense ratio of 0.55 percent.
When Apple Computer went public in 1980, the state of Massachusetts, using the arcane Blue Sky laws, prohibited small investors from buying any shares. The idea was that Apple was such a risky venture that only professionals should participate. This ranks just behind the Boston Red Sox's decision to sell Babe Ruth as the worst ever made in my state.
- Peter Lynch
A guest on Barry Ritholz’ Masters in Business podcast started an emerging markets ETF that weights stock according to the freedom index of a country. The index avoids authoritarian regimes like Russia, China, and Saudi Arabia. This is the first time investing in international stocks actually made some sense. Stock ticker: FRDM
The Volitility Index (VIX) measures the volatility in the S&P 500 index, and is a useful measure of the risk and uncertainty in the market. The CBOE lays out the formula and background of the VIX in this whitepaper.
Peter Lynch is famous for the quote “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.” This captures the problem with rebalancing into stocks that have fallen to maintain stocks with a certain percentage of a portfolio. However the S&P 500 is market cap weighted so it doesn’t need to rebalance based on price changes; it only needs to rebalance based on adding (winners) and removing (losers) stocks and changes in share count. The success of the S&P 500 is a great example of the value of that quote.
The TerraUSD, or UST, stablecoin broke a $1 peg and fell to under $0.30. UST is an algorithmic stablecoin that maintains its value by increasing and decreasing the supply of another coin, Terra Luna. The Terra Luna quickly dropped from over $100 to fractions of a penny as its value collapsed with a supply increase from 340M to 6.5T. The Terra anchor protocol paid 20% APY on UST, and drove demand for the UST. Ultimately the peg couldn’t be maintained as UST size grew.
Link: WSJ
The S&P 500 index ETF is one of the safest bets in stock investing, and over time has an increasing likelihood of making money. However...
