S&P 500 Addition of First Solar Idiotic

I heard this evening that First Solar (FSLR) will be added to the S&P 500 index when Pfizer closes its acquisition of Wyeth soon. First Solar is an innovative fast growing solar firm. However, there is a glut of solar cells on the market which is expected to cause a decrease is solar pricing and margins. As a result, this is another case of S&P adding a company to its index when the company is at its peak. S&P did the same thing during the technology boom adding Yahoo and others to its index during the height of the tech bubble. This action once again demonstrates why the S&P 500 is a not a good index to be invested in.