Replies to post #326629 on Zeev's Turnips Patch-No Politics (ZEEV)

[skono4]

That's the way I see it SteveO but the market looks at it as "new" money to generate bids under the indexes.

at least that's the storyline they are selling

[federal reserves]

STEVEO> If the market is efficient

the impact will be nihl.

The value of MSFT should drop $3, it did from 30 to 27, in fact a little more, 26.64 today, and if the money is redistributed back into the market, other stocks would rise by the drop of the value in MSFT, and of course that money could also actually flow back into MSFT. Maybe as a fund manager, you would use the money to buy more MSFT. I think everyone thinks the fund managers will get the money and invest it causing a spike in the market.

[choad]

That 30B sitting in the coffers of MSFT was either in cash or had to be liquified in order to be distributed, no. And IF liquified from stock market investments, then that impact is long ago absorbed by the market and now it gets a chance to be recirculated into the markets, seems like a win win to me. Maybe some of this unusual brisk November business I am experiencing is a result of this dividend dispersal, I'll start to ask the question!

[Zeev Hed]

The DIA divisor was adjusted, so no impact there, on capitalization weighed indices, yes, that 10% cut should have an impact, but I doubt it is even 1% sine with all its market cap, MSFT is not 10% of either the QQQ or the SPY.