The S&P 500 (^GSPC) is considered a broad market index. But is that really accurate when so much of its concentration is focused on only a handful of stocks?...
) is considered a broad market index. But is that really accurate when so much of its concentration is focused on only a handful of stocks?examines “ market concentration ,” when only a few stocks in an index or investor portfolio account for most of the gains.and The Lead-Lag Reports publisher Michael Gayed , the group dives into the debate over the narrow bull market. “It’s debatable as to whether the S&P 500 is really a diversified index anymore,” adds Gayed.
If Japan then starts to raise rates, that creates a problem for you as the borrower because now you're having to pay back that loan with a stronger yen as a result of that.Now you had a a moment there when everyone freaked out uh my own ex account at Lee Laga airport got 14 million impressions because everyone knew I was the guy that I say you were blowing up.Yeah, it was, it was, and I put a whole video out this on, on Sunday basically.
So it looks like a bull market, but it looks like a bull market because it's really a concentration bubble where you have some of these large cap tech names, driving pretty much the entire performance that's worked. Um But the point is that it's not a good thing when you're at a point where a rising tide uh is not lifting old boats.There's always an aspect of the Parado principle 8020 driving return the small number of things, but you're at a point where it's like the parade of the parado.I also think it's somewhat reflective of the economy, right?Everybody else is still feeling like it's a recession.
Um I do think there's a lot of opportunity in a large part of the marketplace which has lagged throughout the last three years, which is primarily small caps and mid caps, small caps.So I, I've said repeatedly on a small caps, hold the key because part of the reason why I've been skeptical of the so called bull market is the vast majority of stocks are trading below their 2021 highs because there's concern that these companies will no longer make it.
Or is it more that we should be watching general trends in the market as opposed to what inflation is telling us what the latest jobs report is telling us?It's entirely machines that are now goes that are trading off of each other off of headlines because there's no way anybody can possibly read AC P I report, click a button that quickly do it in size and then move markets.
And, and roughly, right, I mean, in reality, it's much more than that when you factor in the unfunded liabilities, that to me is the more um stressful thing I think, to think through, I, I put a poll out on asking who would add more debt to the system, Trump or Harris.The interesting thing was like 70% said Harris, um which was actually fascinating to me because I think it would be more Trump honestly.I think there's a, there's a, I mean, I think it's partly partly justified.
I'm just, what can you tell me, it's really interesting to me how these apply to risk on risk off scenarios and how you would use them in conjunction with each other.
It's like you have to have things that you don't like because they're not performing to be diversified.But broadly speaking, going back to the concentration bubble in the S and P 500 you're definitely not uh uh diversified in that one proxy for in quotes. Um Healthy global systems do not have volatility like this in Forex in currencies where people forget it's not just about the Aussie dollar and the Yen.I mean, this disrupts their planning efforts and how would you possibly know how to hedge or how to think through your revenue if you're an exporter, if in a single day, you can have a disruption like that.
Um, I don't know if you have thoughts on this but basically that's the way it's been done for a long period of time and, you know, you look at the order, it's the euro versus the dollar, not the other way around, but it used to be the Deutschmark versus the dollar.Uh, so you are a musician. II, I had a bunch of songs I had written and I still had the original wave files, which sound absolutely horrible.But I, I had a producer, right, that I found from a, from a website and hired a bunch of session musicians and here we are.Tell us about that experience.
But as I've been sharing it, so many people are now saying you've inspired me to fast and, you know, and then I joke that the stock market's gonna go through its own fast as if I'm right about the scary trade. Verve Taps Liz Parker As A Managing Partner And Appoints Jennifer Jones As General Counsel As Agency Expands Leadership Team
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