TSX:LSG.DB - Post by User
Comment by
FrogEyeson Dec 21, 2014 7:26pm
405 Views
Post# 23254618
RE:RE:Friday
RE:RE:FridayWhen they talk about rebalancing, they're talking about ETFs. In this case there were a number of gold companies that were included in the Market Vectors Junior Gold ETF. In order to make room for those companies to be included they had to lower the weights of other companies in the ETF. It's like if you wanted to buy a stock and you didn't have cash so you have to sell a bit of another. Lots of industry players know what the numbers are so they can plan how to trade the moves ahead of time...yeah I know...as usual it's rigged against the retailers. Sometimes though the logical move doesn't pan out so sometimes they are left holding the bag. It's not that easy to judge the move ahead of time because one big institutional player can screw up the supply/demand numbers.