In this video, Ed Butowsky explains how looking at the S&P 500 might not be telling you the whole truth about what the market is doing. Ed uses three tables to display how the S&P has created a gap between itself and the DOW relying heavily on one simple reason—the top 8 holdings.
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Summary:
- The S&P 500 is receiving the bulk of its contributions from 8 companies.
- Typically the DOW and S&P have similar returns, but this year has provided a unique situation with recent surges like Nvidia and other tech stocks providing a margin between the two.
- Evaluating your own holdings is key to understanding what you own. Our state-of-the-art CHIP Score will provide just that. Understand your holdings today!