{S&P 500 Stock Alert} Make Sure You're Not Holding These Stocks!

These stocks could be dropped from the S&P 500 index! Sponsored [Discover a Recession-Proof Company for Your Portfolio]( We have identified a recession-proof company that has tremendous potential for growth in the coming years. Our research team has given them our highest score as a solid addition to any portfolio.[Go HERE to see the Potential Investing Opportunity]( By clicking this link you are subscribing to The Stock Market Monster Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures](  On the Chopping Block: 9 Stocks Facing Possible Removal from the S&P 500 [Image]  Hello Stock Traders,  Dish Network is about to go through what I like to call the "exit stage left" routine. Yes, you guessed it! Dish Network, one of the smaller entities in the S&P 500, got shown the door in the recent move by S&P Dow Jones Indices, making way for the newcomer, Palo Alto Networks. Dish Network, which currently has a market value of $3.7 billion, will bid adieu to the index on June 20. But, you might ask, why the quick exit? Well, it boils down to size. The impact of a company in the S&P 500 is strongly linked to its market value. As much as we adore the underdog stories, smaller companies' effect on the index is, well, rather limited. Hence, they are generally more at home in the S&P’s mid-cap 400 and small-cap 600. The folks at S&P Dow Jones Indices are keen on making space for the big players, you see, the ones that can really shake things up in the S&P 500. So, with Dish Network ready to depart, who else is likely to pack their bags next? After some diligent number crunching by the statisticians at Dow Jones, they have identified nine other companies that are giving Dish Network company at the lower end of the market value scale. They include Newell Brands, Lincoln National, Advance Auto Parts, Zions Bancorp, Organon, DXC Technology, Comerica, Sealed Air, and Alaska Air Group. Ranging from $3.6 billion to $5.9 billion in market value, these stocks have had a rather tough year, with six of them seeing a dip of 40% or worse. In an ideal world, all these companies would be in the S&P 500. But, we're dealing with a minimum market value threshold of $12.7 billion for the index. So, they would probably feel more at home in the mid-cap index, with an eligibility range of $4.6 billion to $12.7 billion, or the small-cap index, admitting those from $750 million to $4.6 billion. Now, it's not like S&P is revamping the S&P 500 every other day. They make occasional changes, typically focusing on the smaller fish. In the current year, six changes have taken place. In addition to Dish, the list of the departed includes three banks that didn't quite make it - First Republic Bank, Signature Bank, and SVB Financial - along with two other small market value entities, Vornado Realty Trust and Lumen Technologies. Of course, every exit leads to an entry. Palo Alto Networks found a spot, as did Axon Enterprise, Fair Isaac, Bunge, Insulet, and GE Healthcare. In the grand scheme of things, the game keeps playing, teams keep changing, and the index keeps thriving!  Trade safe!  -James  Coming Up Next: Did you FOMO on the recent AI hype? What to do now? Find out in the article below!   SPONSORED 🔽 Sponsored [How To Extract Profits From Uncertain Markets]( The news wants to scream “doom and gloom” about the current market. Conditions feel uncertain – that’s the prevailing sentiment. But guess what? There’s NEVER any real certainty in the market. Reveal how you can take advantage of this current market.[The #1 Strategy For Uncertain Market Conditions]( By clicking link you are subscribing to The Investing Ideas Daily Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy. [Privacy Policy/Disclosures]( FOMO Spurs Retail Investors to Ride the AI Wave Did you ever feel like you arrived at the party just as it was winding down? Well, that seems to be the vibe among retail investors who are starting to pile into tech stocks, after missing the Artificial Intelligence (AI) fueled rally that has been the talk of the town this year. On May 30 and 31, retail investors bought nearly $1.5bn worth of US stocks, a high we haven't seen in three months, according to data from VandaTrack. Unsurprisingly, tech stocks turned out to be the darling of these investors, with the likes of Palantir, Marvell Technology, and UiPath basking in the newfound attention. Not to forget the tech heavyweights Nvidia and Microsoft who continued their reign. Marco Iachini, VandaTrack’s VP, aptly summarized the trend: retail investors are fearfully trying to get on the tech bandwagon before it gets too late. In the previous weeks, jitters around the US regional banking sector and the looming debt ceiling agreement had led smaller investors to seek solace in bonds and low-risk money market funds, which, as per Barclays, were providing comparable yields to stocks. But then, who can resist the siren song of the tech rally? VandaTrack observed that retail investors' purchases of money market ETFs saw a downward trend recently. This signaled a shift by our everyday "mom and pop investors" towards riskier waters, no doubt enticed by Nasdaq Composite's handsome 27% gain this year. Vanguard’s Information Technology ETF and Fidelity’s MSCI Information Technology Index enjoyed considerable inflows last week, their highest in more than a year. To the keen eye, this suggests that the US retail tech impulse is back in action. According to JPMorgan analysts, the front runners in this charge are the younger investors, their hunger for exchange-traded individual equity options visibly increased. Interestingly, retail investors diving back into equities points towards their unexpected resilience against high inflation. Torsten Slok, chief economist at Apollo Global Management, claims that US households have spent less than half of the $2.3tn in excess savings accumulated during the pandemic, which explains why consumer spending is strong. However, that’s not to say that all retail investors are happy with the state of affairs. A trip to Reddit's Wall Street Bets forum reveals a cacophony of voices either regretting missing the tech rally or voicing concerns about the high valuations of certain shares. To borrow a phrase from one of the users, "scared money don't make no money." But then, retail investors weren't always this cautious. Remember the GameStop saga from 2021, where the stock skyrocketed by over 2000% in a month? Nowadays, it's C3.ai, a US-based software provider that has caught the fancy of retail investors. Despite accusations of overvaluation from investment group Kerrisdale Capital, C3.ai saw its stock leap by 195% this year. Meanwhile, Nvidia has grown by 170% in the year-to-date and trades at a price-to-earnings ratio of 190, a drastic jump from 47 at the start of November. Peter Garnry of Saxo Bank highlights that high equity valuations and the shift in risk sentiment around AI stocks are potential risk factors for the US stock market. Despite the bullish sentiments around AI, analysts at Morgan Stanley reminded us that even revolutionary technology like AI won't be able to halt or cushion a wider earnings recession later this year. Maybe it's time we took off those rose-colored glasses and got a reality check! After all, nobody likes to be the last one dancing when the music stops.   Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. 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