With the growth of exchange traded funds, an issue with one stock can quickly bleed into the entire sector.
Take Netflix (NFLX - Get Report) for example. The company reported disappointing earnings on Monday, send the stock sharply lower, along with other tech stocks. This was the subject of TheStreet's Jim Cramer's Real Money column on Tuesday.
A similar situation has occurred with trade worries. When a negative trade tariff headline emerges, the entire industrials sector can be affected.
Listen to TheStreet's Scott Gamm speak with Todd Rosenbluth, director of mutual & exchange traded fund research at CFRA, in this exclusive podcast.
And for more audio content by TheStreet, check out these podcast series:
- Activist Investing Today with Ron Orol
- Trifecta Stocks
- Alpha Rising
- Jim Cramer Live
- Technically Speaking
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