Comments on: The Lesser of Two Evils: $SPY vs Individual Stocks $$ https://phantasmix.com/the-lesser-of-two-evils-spy-vs-individual-stocks/ Stock Market and Personal Finance Mon, 19 Mar 2012 04:47:39 +0000 hourly 1 https://wordpress.org/?v=6.8.1 By: duc https://phantasmix.com/the-lesser-of-two-evils-spy-vs-individual-stocks/comment-page-1/#comment-5129 Mon, 19 Mar 2012 04:47:39 +0000 https://phantasmix.com/?p=5073#comment-5129 Kat,

I tend to agree, the ETF mitigates largely credit risk, leaving only market risk.

If you want the volatility, simply leverage up via Options.

jog on
duc

]]> By: Phantasmix https://phantasmix.com/the-lesser-of-two-evils-spy-vs-individual-stocks/comment-page-1/#comment-5128 Sat, 17 Mar 2012 19:06:33 +0000 https://phantasmix.com/?p=5073#comment-5128 “The profitability criteria are four quarters of positive net income on an operating basis. Sometimes, Standard & Poor’s will include a company that would be profitable except for a
loss due to a merger or acquisition.”

I didn’t say there weren’t star performers out there, but they’re hard to find and it’s still risky (all I’m saying).
Not that it ever kept anyone from trying.

Next, I’ll try to find how many companies went Bk vs the ones that are still being traded.

]]> By: El Guapo https://phantasmix.com/the-lesser-of-two-evils-spy-vs-individual-stocks/comment-page-1/#comment-5127 Sat, 17 Mar 2012 18:52:34 +0000 https://phantasmix.com/?p=5073#comment-5127 But a company no longer being part of the SP500 doesn’t mean it’s gone belly up. The stocks are selected by committee, after certain financial criteria have been met. One bad quarter could disqualify a company. Doesn’t mean they’re a bad long-term investment. The committee also has to pick companies that reflect a broad range of US industries, so a great co could get booted if a new ‘industry’ emerges.

Definitely seems like a sensible approach, but there are still star performers that are equally safe bets as well.

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