Potential Market Disruption Ahead

Early next week (Monday the 27th) we will see ‘rebalancing’ announcements being made by Wells Fargo on a number of Indexes. Below is a list of mostly preferred stock indexes that will announce rebalancing.

As you can see the announcement will be made Monday with actual rebalancing occuring on the next Monday (2/3).

Many ETFs track these indexes and I randomly checked a few of them and there is sizable potential volume that could occur in many issues–whether it is orderly or not is anyone’s guess. There may be issues “dumped” that would allow a few issues to be picked up at more bargain prices. We will wait and see what happens.

NOTE–the ETFs tracking these indexes are not the mega sized ETFs, but as a group they are sizable.

6 thoughts on “Potential Market Disruption Ahead”

    1. Jim–I haven’t checked into it further, but I have seen no market disruptions as of yet (at least any of magnitude). Odds are that the trades will happen off the exchange in prearranged sell/buys and there will be no disruption–but one never knows for sure.

  1. Thanks for the heads up. It appears the copper/gold ratio is rolling over again. Believe it or not, this correlates very well to the 10 year yield. Yields are following it lower. Could be the virus news or 15 trillion in negative rates around the world, who knows. ATB

  2. Good Thursday morning Tim; Since my original email ended up in your spam I thought I would just send you a short message here. I want to give you a “BIG THANK YOU” for your really nice email last night. I think I gave you my cell number so if you ever want to compare notes feel free to call me. Like YOU I have been investing now for 49 years so I tend to look at things with just maybe a little more of a “discerning and skeptical eye”. I’ve just about seen it all over those 5 decades. LOL If you should ever get to Omaha please let me know so I can buy you a great lunch. Thank You again. Chuck P

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