The S&P FIVE... hundred: Mega-Cap Tech & Everything Else
This week in Random Gleanings Chris Beard & Jesse Hansford discuss how the weighting of the largest five companies (Apple, Microsoft, Alphabet (Google), Amazon & NVIDIA) account for ALL – actually MORE THAN ALL – of the return in the S&P 500 so far this year. This means the aggregate return of the remaining 495 companies have a negative return year-to-date. Whether that’s good or bad…it is worth noticing, because from a valuation (Price to Earnings) standpoint those companies have gotten rather pricey.
In addition to the Mega-Cap Stock talk, the guys chew through some INTERESTing RATE conversation. Market participants don’t believe the Fed’s resolve in keeping rates high in 2023, but are rate cuts really what we should be rooting for?
Finally, some recession signals are flashing so strong even the robots (ChatGPT) are admitting the likelihood.
We hope you learn something helpful. If so let us (and others!) know.
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