Two Interesting Facts

I saw an interesting piece of information the other day which stated that the top six stocks in the S&P 500 are now worth the same as the bottom 290.  The S&P 500 is market cap weighted so it stands to reason that the most profitable and successful companies over time come to dominate the index.  Those top six companies are Apple, Facebook, Microsoft, Amazon, Alphabet {Google} and Berkshire Hathaway.  Five of these are technology companies.  Berkshire is Warren Buffet.  I don't know if I have listed them in order of market cap.

Visually this makes sense when looking at different parts of the market.  The lions share of gains by sectors this year has come from technology.  Most everything else is just sort of flopping around, range bound, in patterns that now go back almost 16 months.  Only tech really has been able to break out in 2019.

I have no idea what this portends going forward.  Generally though, healthy markets show the tide lifting most boats.  Market watchers generally prefer to see broad market participation than a market being powered higher by only a select few names.

On a different note with this mornings opening sell-off the S&P 500 is down a little over 3% from its most recent high.  If this holds all day then this would mark the largest market drawdown so far of 2019.  

As I stated yesterday the next post here will be sometime early next week.

*Long ETFs related to the S&P 500 in client accounts, although positions can change at any time    Also all the stocks we named above are components of ETFs we personally invest in or own for clients.  Finally I have clients who own Apple and Microsoft as part of legacy positions.  We reserve the right to change any of these investments without notice on this blog or via any other form of verbal, written or electronic communication.