A Big Stock Index Just Rebalanced - Here's What It Means and Why You Should Care

Money Rehab with Nicole Lapin

Money News Network

Education, Self-improvement, Business

4.4 • 1.4K Ratings

🗓️ 26 July 2023

⏱️ 9 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Every week on Wednesdays, Nicole breaks down the biggest headlines on Wall Street and unpacks how they will affect your wallet. Up this week: the Nasdaq 100 just rebalanced. Nicole explains what that means, and how it will impact fellow investors who Index Funds and Chill.

Transcript

Click on a timestamp to play from that location

0:00.0	I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand.
0:07.0	It's time for some money we have.
0:09.0	Alright, here's your weekly round up of the biggest headlines on Wall Street and how they
0:18.4	affect your wallet.
0:19.4	Today's update is all about stocks.
0:21.3	The stock market has been on an upsting.
0:24.5	It has seriously been on a tear for a while now.
0:26.6	With the Dow, the Nasdaq and the S&P 500 indexes all trending upwards since the uncertainty
0:32.0	in March caused by the collapse of several banks.
0:35.2	That bounce has come in part from the increasing value of the seven large-cap companies whose
0:40.8	massive size results in an outsized impact on the market.
0:45.6	The market share of those companies has become so large that the Nasdaq 100 underwent some
0:50.1	special rebalancing on Monday that would help its index funds adhere to SEC roles about
0:55.5	diversification.
0:56.5	Oh, that was a mouthful.
1:00.3	But breaking the story down into little snack-sized pieces is exactly what I'm going to do in this
1:04.9	episode.
1:05.9	Because if you're like me and your investment strategy involves a lot of index funds
1:09.4	in chilling, then this rebalance actually impacts your investments.
1:14.1	Part of the benefit of index funds is that you don't need to track every single move
1:18.4	that the market makes, but even so, we should still put a little time into understanding
1:23.6	how these funds work and where your money is actually going.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Money News Network, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Money News Network and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.