When three companies—Amazon, Microsoft, and Netflix—comprise almost half of the performance year-to-date for the S&P 500, what happens to the index when they fall out of favor? It has long been my belief that investors don’t measure the risk inherent in a market-cap weighted index such as the S&P 500. They are invested in passive mutual funds that mimic an approach that has become more top heavy by the day. Investors should not be surprised when huge drops accompany huge gains.
E.J. Smith - Your Survival Guy
Latest posts by E.J. Smith - Your Survival Guy (see all)
- If the Global Elite Win in November, Say Goodbye to Your Guns - September 18, 2020
- It’s Never a Bad Time to Downsize Your Home - September 18, 2020
- Is Your Stock Portfolio Suffering from the Dunning Kruger Effect? - September 17, 2020
- 2020: College Is not What You Signed up For - September 17, 2020
- Chinese Virologist Says China Manufactured COVID-19, Calls it “Frankenstein” Virus - September 16, 2020