Second-Guessing the S&P 500

Why hasn't anyone questioned the addition of TransOcean (RIG) into the S&P 500? The company had a whopping $15 billion market cap before the addition. Think about that for a second. LinkedIn (LNKD) has a market cap almost twice that size at $26 billion while Facebook (FB), which seemed like the no-brainer selection, has a market cap above $125 billion. Couldn't we have just made things simpler by adding the $10 billion Icahn Enterprises (IEP) instead? Social media is vastly underrepresented in the S&P 500 compared to the energy sector or even the oil subsector, yet the committee somehow selected RIG.

Speaking of social media, I see that Carl Icahn is doing his best CYA this morning given the influence his tweets seem to be having on stock movement and market activity. In case you missed the announcement, it's brief and worth posting here:...396 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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