So if you look up SPY Holdings, it states 30% of SPY is weighted on Technology.
5 Companies make up 18% of the S&P 500: Apple, Facebook, Google, Amazon, and Microsoft.
Odds are, most of you are invested Long in those companies and believe that they’ll hold up even through a Depression.
Given that you know these stocks to be Powerhouses, Depression Proof, stable for the long term, and most importantly weighted so much on SPY, why do people insist on buying SPY Puts?
Rather than gamble on this particular ETF, wouldn’t it be more profitable to tackle SPECIFIC companies who have terrible balance sheets and most likely WON’T survive this Recession? Why SPY specifically?
Am I Wrong? Or is this illogical thinking?
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.