SPY is the symbol of the largest ETF with assets over $93 billion. It is referred to as Spydee. This is the easiest way to capture the move of the S&P 500. SPY trades in massive volume, almost always the highest of the day. This vehicle is used by professionals and retail investors and speculators, alike. Pros use it for rapid entry into the market and to hedge positions, either long or short. Day traders, both pros and retail, use it like mad since a fifty cent move, for example, translates into a nice gain.
For longer term investors, convinced that buy and hold works, SPY could be a component of a lazy portfolio. But, by now, you should know how I feel about buy and hold. Not.
Here is a silly and wonderful Woody Allen outtake about spiders sent to me by my sister.
http://www.youtube.com/watch?v=XQMjrGnGHDY
Apropos of nothing: if this guy Slap Chop isn’t the best pitch man ever I don’t know who it is. The successor to Billy Mays; Billy Mays Mayhem
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