Yulia Slavina

Jim Cramer: Index rebalancings with no buybacks allowed can cause billion-dollar market moves

Jim Cramer: Index rebalancings with no buybacks allowed can cause billion-dollar market moves
Late index rebalancing triggers market moves

Jim Cramer, host of Mad Money on CNBC, criticized the timing and management of index rebalancings, specifically those that occurred at the market close yesterday.

He argued that conducting a re-balance at 3:50 p.m. without allowing buybacks can unnecessarily impact billions of dollars in market value. Cramer called for exchanges, major companies, and fund managers to work together to improve the process and prevent such disruptions.

Cramer recently examined how volatility in the Nasdaq from January 1999 to February 2000 affected investor outcomes. He has also promoted special pricing on his Club membership, making a $4 offer available until a major monthly meeting. These activities follow his ongoing commentary on market structure and investor decisions.

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