Latest / The Investor Coaching Show with Paul Winkler
Index Funds Bought SpaceX. So Why Didn’t the Stock Go Up?
Many investors expected SpaceX’s addition to major indexes to create a surge in demand and push its stock price higher. Instead, the price fell. So what did investors misunderstand? Paul and Evan explain why forced buying from index funds does not automatically create lasting returns. Over time, a company’s stock price must be supported by its earnings, risks, and underlying value — not simply by a temporary increase in demand. The struggle SpaceX investors are having right now is that they jumped into a company the market still doesn’t know how to properly evaluate. Want to cut through the…
The skinny
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