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Andrew Lokenauth points out that while the S&P 500 index reached a new all-time high last week, just 20 out of 500 constituent stocks achieved a record alongside it. The last occurrence of such narrow participation was in March 2000, coinciding with the top of the dot-com bubble, after which the Nasdaq declined 78%.
Additionally, Lokenauth notes that 222 S&P 500 stocks are currently trading below previous levels, highlighting a disparity in recent market gains.
Lokenauth has recently discussed long-term investment strategies in the index, outlining how putting $145 weekly into an S&P 500 index fund via a Roth IRA could grow to $1.4 million by retirement. He has also commented on moves within the technology sector, noting NVIDIA’s expansion of its full-stack model into the laptop market. The recent observations on index concentration add to his regular analysis of market and sector developments.