Campbell Just Got Cut From the S&P 500, and It Reveals Why the Index Always Wins.
For weeks the market watched the war and the SpaceX IPO. This week a quieter and far more important mechanic surfaced, and it explains why the S&P 500 keeps rising decade after decade. On June 22 the index reshuffled its members, and the swap tells you everything about how the machine works.
In came Marvell and Flex, a chip designer and the contract manufacturer that builds for Apple and Nvidia. Out went Campbell, the canned-soup name millions of investors grew up with, and Pool Corporation, both demoted down to the SmallCap 600. This is the market’s open secret: the index is engineered to rise. Every quarter it adds the fast risers and removes the laggards, so it is not a neutral thermometer of the economy, it is a curated list of winners that constantly fires its losers. That is the real reason “the index always goes up” over the long run.
The second layer is that the reshuffle is self-reinforcing. Index funds that track the S&P are now forced to buy Marvell and Flex and sell the deleted names, which pushes fresh money straight into the AI and chip leaders that were already winning. Marvell ran from around $145 in April to over $300, and now it gets a wave of mechanical index buying on top. The rich get richer by rule, not by luck.
The warning is that the same comfort is also a trap. The index’s permanence hides the carnage underneath it. Campbell, a genuine household memory, was quietly cut because its price was falling, with no vote and no farewell. Owning the whole market is durable, owning the wrong single stock is not. And the engineered climb still has limits: the report flags Nvidia’s unfinished neckline, an Elliott Wave fifth-wave warning, and even Powell’s own caution about a risk that could derail the bull. Long does not mean forever, and the runway may be closer to a year than to never.
The index is built to climb, so respect the machine and own it, but never mistake its permanence for safety in any single name, because the S&P will drop you the moment you stop rising.
Full report available via the download button below. Read previous US Stock Express editions here.
US Stock Express 20260623 Secret Campbell MRVL FLEX
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.