Just 10 companies accounted for all


Just 10 companies accounted for all of the S&P 500’s 4.3% advance during the second quarter, and then some 

Nvidia, Apple and Microsoft were the three biggest contributors from the group, 

but it also included a handful of companies, like Amazon, Eli Lilly and Costco that are outside of the tech sector.

MarketWatch 3 July 2024

The S&P 500 Isn’t as It Used to Be

Six out of the top seven positions in the S&P 500 by weight are in the tech sector currently.
This means that investors’ largest risk in holding the S&P 500 is the same as holding tech firms directly—interest-rate risk, lofty price valuations and heady growth-rate expectations.

The average Shiller CAPE price-to-earnings ratio—which is an inflation-adjusted measure of a stock price divided by the average of 10 years of earnings—was 13.5 in the 1970s, and climbed to over 30 by the early 2020s. 

Derek Horstmeyer Wall Street Journal 3 July 2024


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