What is the S&P500 Index?
The S&P500 Index is a list of the 500 biggest public companies in the USA. It is based on market capitalisation — that is, the current share price multiplied by the number of shares on issue determines a company's market capitalisation and whether it makes the S&P500 list.
Small companies can move up the list of US companies and break into the S&P500 if company profits consistently increase over an extended period of time.
Increasing business profits or Earnings increases the share price.
Beat Buy and Hold with the UIS Risk Ratings
Simply applying the UIS RR as an exit filter for Buy and Hold trading of the SPY has a dramatic effect on trading results. All Big Bear crashes were avoided and all drawdowns were dramatically reduced. The Return On Investment was much higher than Buy and Hold with significantly less risk.
Read moreWhy Are Some Stock Markets More Speculative Than the NYSE
Company Earnings are the driver for the Fundamental Intrinsic Value of a company's share price. Long term, stock prices tend to move in cycles with the PE ratio rising to over 20 then crashing before reverting to a mean of around 17.
Read more
Discover the Key Indicator That Drives Stock Market Performance
Whether you're new to investing or an experienced trader, understanding company earnings can help you make more informed investment decisions and avoid costly mistakes.
Sample UIS Risk Rating Report