Beat Wall Street's Buying Frenzy With This Little-Known Rule
You may have heard this advice in the past: "Buy the Generals."
That meant investing in automaker General Motors (GM), cereal giant General Mills (GIS), defense contractor General Dynamics (GD), and longtime industrial conglomerate General Electric ("GE").
For a long time, I agreed.
Years ago, I considered GE a forever stock...
It started as a sleepy business designed to sell light bulbs and help people buy kitchen appliances on credit. It was boring but stable, making it a great long-term holding.
Then GE began gobbling up practically every business it saw for sale – many having nothing to do with its core divisions. It expanded hugely into finance, eventually turning into what was essentially the seventh-largest bank in the country.
But it didn't have the same safeguards or capital sources as a traditional bank. So when the credit markets seized up during the Great Recession, GE nearly went bust... It became the "Lehman of Lightbulbs."
Despite its financial difficulties, GE remained a stalwart on the Dow Jones Industrial Average. This index is made up of 30 of America's best blue-chip industry leaders. So having your stock included is a sign your company has staying power.
I kept an eye on GE for years, thinking that it had a path to resurrect its previously dominant business... It never happened.
In 2018, GE was finally booted from the Dow, ending its 111-year run. And in 2024, the company split off into three independent entities. The General Electric that many of us knew as a household name growing up was over.
While the end of GE's historic run in the Dow made headlines, companies shuffle on and off the major indexes all the time. The S&P 500 Index, the Nasdaq Composite Index, and the Russell 2000 Index also regularly change up their rosters.
These moves reflect the changing industrial and technological landscape in the U.S. And the companies that join these indexes are often put into the spotlight for the first time... which can lead to a rising stock price.
This exact situation is set to unfold during the Russell 2000's rebalance on June 26.
My friend and colleague Joel Litman from our corporate affiliate Altimetry says a little-known Wall Street rule tied to this event could create one of the biggest short-term profit opportunities of the year...
You see, the Russell 2000 tracks 2,000 small-cap stocks. Whenever those names change, large institutions that track the index have to buy the new holdings and sell the ousted ones.
That means billions of dollars can suddenly flood into these stocks during the upcoming rebalance.
General Electric's removal from the Dow signaled the start of the company's downfall. The opposite is true for any business added to the Russell 2000 during its rebalance... It means automatic buyers for a previously overlooked company.
According to Joel, this annual process has historically created a predictable window of opportunity for fast gains – especially in small caps that can move dramatically when institutional money arrives.
Folks who act now have the chance to beat this wave of buying that's just around the corner... before Wall Street is forced to pile in.
Click here to learn more about which stocks are set to benefit most.
Now, let's get to this week's Q&A... And as always, keep sending your comments, questions, and topic suggestions to feedback@healthandwealthbulletin.com. My team and I read every e-mail.
Is Sourdough Bread Good for You?
Q: Do you consider sourdough a healthy alternative to white bread? Is it healthier like a whole wheat loaf would be? – I.L.
A: Thanks for writing in, I.L. Sourdough is a bit different than other breads that use white flour, like white bread.
Most white bread increases inflammation in your body due to excess sugar and its carbohydrates. It ranks high on the glycemic index, which means it raises your blood sugar and causes a crash afterward.
It's important to note that sugar isn't the only thing that causes blood-sugar spikes – carbohydrates can do this, too.
The good news is that sourdough bread has no sugar and is relatively low on the glycemic index. So while it will raise your blood sugar because it's a carbohydrate, you won't see a spike followed by a quick crash.
Sourdough also contains Bifidobacterium bifidum. This bacteria strain keeps harmful pathogens from entering our bloodstream and making us sick.
But I still recommend stone-ground wheat breads and sprouted grain breads over white bread or sourdough. They have more fiber and greater overall nutritional value.
Whichever type you choose, bread shouldn't make up a major part of your diet, as it generally lacks many essential nutrients. So eat any bread in limited quantities.
And the next time you pick up some bread, read the ingredients. Ideally, the No. 1 ingredient is whole grain or grains. And if you see sugar on the label, skip it.
What We're Reading...
- Did you miss it? You can do better than conventional investing wisdom.
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Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
April 17, 2026