Happy New Year! PP&W's dynamic duo of Chris & Jesse offer thoughts on the average stock in 2021 (hint: the INDEX defied the AVERAGE), counter views on the Market's top-heaviness, and a little food for thought on New Year's Traditions. Thanks for tuning in!
Charts from the episode:
Some of the 2020 High Flyers got crushed in 2021, which wasn't reflected in the major indices.
While the S&P 500 saw a Max Drawdown of 5.2% in 2021, the vast majority of the 500 components (93%) experienced a 10% decline during the year. 11% of the components (55 stocks) experienced a 30% decline!
Top Heavy??? Well, the top 5 stocks have never represented a higher weighting of the index in the last 40+ years.
Before we get to negative on the "heaviness" of stocks at the top... this chart shows that the Net Income of the top 25 companies represents a higher percentage of the total index income than their Market Cap Weighting.
Then: Top 5 Stocks in 1999
Now: Top 5 Stocks from 1999 performance until now
Chris went with the traditional Southern Dishes for New Year's... Jesse opted for seafood.