With some stocks like Microsoft and Nvidia 6-7% and the top 5-6 stocks sometimes reaching 30% of the index, is the famed index now becoming too undiversified?
The index has worked well over the past years as those companies have surged. Moving to a longer horizon, however, I don't think an investment in the top 6 companies 50 years ago (General Motors, Exxon Mobil, Ford, General Electric, IBM Chrysler, etc) would have turned out too well.
Is anyone moving away from the S&P500 in order mitigate the risks of an increasingly undiversified index?
The index has worked well over the past years as those companies have surged. Moving to a longer horizon, however, I don't think an investment in the top 6 companies 50 years ago (General Motors, Exxon Mobil, Ford, General Electric, IBM Chrysler, etc) would have turned out too well.
Is anyone moving away from the S&P500 in order mitigate the risks of an increasingly undiversified index?
Statistics: Posted by William Million — Tue Aug 27, 2024 10:43 am — Replies 27 — Views 837
