TESLA IN THE S&P 500 | NEW $4000 PRICE TARGET??

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Like I mentioned, it was JUST ANNOUNCED that Tesla would be added to the SP500.

Right now, there’s over $11.2 TRILLION DOLLARS invested in the SP500…and almost HALF of that, at $4.6 TRILLION DOLLARS…is invested within index funds that include the SP500.

That means…if we JUST consider the $4.6 TRILLION DOLLARS sitting within index funds…over $51 BILLION DOLLARS of that is going to have to invest in Tesla Stock so that they properly balance their portfolio based on each companies weight.

That’s the reason WHY - if you haven’t owned Tesla before, but you invest your money in an index fund like I always talk about…by the end of December, over 1% of your portfolio will now be a friendly reminder of Elon Musk.

That’s also why people see this as such a big deal…see, that means that EVERY TIME someone buys an index fund containing the SP500…they’re AUTOMATICALLY investing in Tesla. And that just means a constant, steady stream of money flowing into Tesla stock.

Historically, here's what happens when a stock is added to an index:

Now, when it was researched, it was found that stocks DO generally see a rise in price once it’s ANNOUNCED they’re going to be added to an index - but ONCE they’re actually added to the index, the pent up demand slows down - the stock price drops - and then it returns it a new “normal.” 

This was also confirmed by a study published in the 1990’s, that found that the announcement and inclusion of a stock within the SP500 DID have a measurable effect on the price…short term. Long term, however, it was found that adding a stock to an index has no permanent effect on the price.

In fact, it was studied that a stocks “premium” for being added to an index completely wore off after 2 months, usually returning to the same price before it was ever announced. 

And overall, studies have shown that stocks added to an index did NOT see any superior performance and demand over stocks which were NOT traded within an index…

So, given all of this information…like we’re seeing right now…the ANNOUNCEMENT is increasing the stock price, just as studies have shown was going to happen…and, historically, that announcement has a more powerful impact than the actual inclusion itself.

If you’re investing in this specific stock, just be prepared for this to be a wild ride. It’s not uncommon for this one to be up or down 10% in a few days, so understand WHY you bought in and just hold as long as nothing fundamentally changes. If you buy into Tesla, buy with the expectation of holding this for YEARS…and then hang on.

Otherwise, if you’re investing in index funds like I preach nonstop here…well, congrats, just over 1% of your portfolio is now going to be Tesla. This isn’t exactly enough to make waves in your portfolio…BUT, it could have a decent impact long term if it continues to do well.

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[mauit]

I remember when I got my stimulus and I spent $709+ on one Tesla stock. My family was laughing cause my other family members were buying cars and other luxury... The stock split in the summer and gave me 5 stocks... now it’s entering the S&P 500... now who’s laughing 😂

[ItsYukiToo]

"Is Elon Musk a genius or is he crazy?"

Yes...the answer is yes. 🤣

[krismilliken]

serious people its nuts!!! I've only got just "1" share in $TSLA and I'm up $30 so far for only few hours holding. got in at $453.11 on 11/18/20, yeah i know it's small its a long hold for me and i will be buying a lot more later on, but still its my money working for me instead of SITTING in a SAVINGS ACOUNT. I trade penny stocks, so yeah fast crazy junk is normal for me but i know how violent the market is so ALWAYS do your own research before you buy anything people Graham isn't lying about that but thanks to his knowledge and some of my own I'm in the green all due from his passion on helping his viewers become better off so THANK YOU Graham

[icecold]

I got lucky, people kept telling me to buy, so I bought 2 shares at $900 then the split happen so i have 10 and now with the S&P 500 announcement, let's just say I'm a happy camper

[blackericdenice]

I love Tesla stock. I bought my first house selling my Tesla stock.

[zachwestbrooks]

New introduction:
"What's up S&P it's Tesla here!"

[justintimeforjustincredible]

Elon Musk is the real life Tony Stark. Jeff Bezos is the real life Lex Luthor 😂

[successwithstacee]

I got my free stocks with Webull in January and bought a bunch of Tesla because of your videos and doing research. I can't believe how much it went up and I'm just holding on to it. I never thought I'd invest in individual stocks but it's fun when they go up in value.

[pyroace]

Bout to buy a home n that simply safe look really handy right now

[TumblinWeeds]

That sponsor plug was genius 😂😂 putting a puppy in right when the sponsorship starts so we can’t skip over it

[SajjaadKhader]

Another great video! Small channel here, lots of respect Graham!

[Atombender]

Meanwhile in Cryptoland
BTC 10/18: $11, 400
BTC 11/18: $17, 700

[financialfraternity]

Got in on Monday at 408 with December options.. made 12k in two days so far.. to be continued
Edit: sold the following Tuesday for 25k profit. Still holding 9k in feb 19th calls.. god bless tesla

[errolm]

Like button smashed. Thanks for the content

[geekwheel]

"What's up Graham, it's guys here"

[boulderdash]

You messed up a few things. Batteries and buy needs for a stock. It is a lot more than 51B. It would require closer to 30% of all float to be acquired.

[steveelling]

Ha, Graham, "Actual Factual" would be a great rock band name.

[foundationsofknowledge]

Graham: WOW Tesla is doing great

Elon Musk: This is just the beginning

[DoctorJack]

“Solar, energy, battery, data, cars”. U left out manufacturing, materials science division, shared technology with SpaceX, top talent currently and continue to want to work for Elon, FSD, insurance. Oh and tequila and red short shorts. 😜😊. Great summary Graham! One things for sure. Tesla will do what Tesla will do. Long term hold is key.

[danybnr]

Graham Stephan is the type of guy that I watch every day and keep watching the videos all over again 💯:)