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I'm just wondering, with all the money flowing into index funds and ETFs, is it creating opportunities to purchase individual stocks before their insertion into the indices?
For example, you think some stock is about to go into the S&P500, and knowing that tons of mutual funds and ETFs will be forced to purchase it, you buy it in advance and wait for all the buying pressure. And as the pressure pushes it up, you sell.
It seems like the current vogue of indexing and more and more cash sloshing into the market, it might make some good opportunities for the smaller more nimble investor.
Just a thought.
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