In the last 18 years, buying the index
between the fourth quarter and closing positions by the end of the first quarter of the following year has showed the least risk," he said.
However, with the emergence of widespread buying the index
surged to day's high of 28,298.34.
1550 points is the target of decline within subwave (), where we recommend buying the index
When a substantial fraction of market participants are simply buying the index
, the market's role in ensuring good corporate governance also disappears.
What the current market situation has done though is to make the market a stocks market again where stock selection becomes key rather than buying the index
as our Shareleague demonstrated again last year.
If healthcare costs had been lower than expected (due, for example, to the unexpected efficacy of a new AIDS drug, or an unexpected mildness of a flu epidemic), then the company would have realized a loss on its futures contracts (due to buying the index
at $65,000 and, six months later, selling it for some lesser amount), but this loss would be offset by the unexpected gain in underwriting income (due to the lower-than-expected loss ratio).
(In fact, this is how futures contracts are canceled.) When it does so, it has a futures profit of $500 per contract, by virtue of first buying the index
at $2,500 and then later selling it at $3,000.