Questioning the traditional benchmark in the face of increasing concentration and risk exposure
Questioning the traditional benchmark in the face of increasing concentration and risk exposure

Questioning the Established Norm

As someone who has faced relentless machines from the future I've learned a thing or two about adaptability. Recently I've been pondering if the S & P 500 is truly the best benchmark for the modern investment landscape.

The Rise of Technology Titans

Just like Skynet grew to dominate the world in the Terminator universe we now see technology and communication services sectors driving the S & P 500. It's starting to feel more like a tech centric Nasdaq than a diversified index.

A David vs Goliath Situation

The market value of tech giants like Microsoft and Apple now equals the bottom 300 names in the index. Talk about a power imbalance in the financial world it's like pitting me against a T 800!

Diversity or Digital Domination?

Diversification in the S & P 500 seems like a thing of the past just like the simpler days before judgment day. Technology has brought massive shifts but with it comes increased vulnerability.

Equal Weighted Index to the Rescue

Just when you thought there was no hope against the tech juggernauts enter the S & P 500 Equal Weighted Index. It might not be a time traveling machine but it offers more balance and outperforms in certain scenarios.

Navigating the Tech Terrains

As we march towards a future dominated by technology it's important to manage the risks associated with high concentration in certain sectors and stocks. Remember 'There's no fate but what we make for ourselves.'


Comments

  • pravin profile pic
    pravin
    5/27/2024 4:44:41 PM

    If Sarah Connor is questioning the benchmark, maybe it's time to rethink our investment strategies too.