It used to be that most of us gauged stock market performance relative to an index of 500 stocks called the Standard & Poor’s 500 (S&P 500). It may be that the S&P 500 is no longer a good reflection of financial reality.
We noted last month that the performance of the S&P 500 is dominated by just seven stocks. Because the S&P 500 is a “market-cap weighted” index (the larger the company, the greater the impact on the index), the index appears to no longer be a reliable indicator of the “overall” market.
This information is provided for general information purposes only and should not be construed as investment, tax, or legal advice. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.