Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  A Snapshot of Market Breadth
Posted Under: Broader Stock Market

 
View from the Observation Deck  

  1. We continue to receive questions about the degree to which the top 10, 25 and 50 companies in the S&P 500 Index, by market capitalization (cap), are influencing the performance of the index in the current bull market.
  2. The price-only returns featured in the table are shaded in either gray or blue. The gray shaded years indicate that a broad number of stocks in the S&P 500 Index are participating in the bull market, while the blue shaded years indicate that the top 10, 25 and 50 stocks have garnered more favor from investors. 
  3. We included 1998 and 1999 to remind investors of what top-heavy performance can look like at the extreme. If you recall, the climate in the equity bull market back in the latter half of the 1990s was characterized by former Federal Reserve Chairman Alan Greenspan as "irrational exuberance."
  4. The bull market, as measured by the S&P 500 Index, actually began the day after the close of trading on 3/9/09.
  5. From 3/9/09-7/31/17 (not shown in chart), the S&P 500 Index posted a cumulative total return of 336.02% (19.16% on an average annualized basis), compared to 442.87% (22.31% on an average annualized basis) for the S&P 500 Equal Weighted Index, according to Bloomberg.
  6. Those returns suggest that this bull market has been inclusive, rather than one dominated by the biggest companies, in our opinion.
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Index is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance. The S&P 500 Equal Weighted Index is comprised of the same companies as the capitalization weighted S&P 500 Index, but each company is allocated a fixed weight, or 0.2% of the index total at each quarterly rebalance.

To Download a PDF of this post, please click here.
Posted on Thursday, August 17, 2017 @ 12:06 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS


 PREVIOUS POSTS
A Snapshot of Growth vs. Value Investing
US Stocks Ended August 11, 2017
US Economy and Credit Markets Ended August 11, 2017
The Great Rotation From Bonds To Stocks Has Yet To Happen
Equity Mutual Fund Managers Have Plenty Of Dry Powder
US Stocks Ended August 4, 2017
US Economy and Credit Markets Ended August 4, 2017
The U.S. Dollar Is Down In 2017
Corporate Earnings Estimates Reflect Strength
Strong Earnings Push Markets Higher
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.