Basic Materials Ownership

Some institutional investors establish a significant position in indexs such as Basic Materials in order to find ways to drive up its value. Retail investors, on the other hand, need to know that institutional holders can own millions of shares of Basic Materials, and when they decide to sell, the index will often sell-off, which may instantly impact shareholders' value. So, traders who get in early or near the beginning of the institutional investor's buying cycle could potentially generate profits. Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any index could be closely tied with the direction of predictive economic indicators such as signals in board of governors.