Largest 10 S&P 500 stocks outperformed by 4.9 percent per year over past decade, Meb Faber notes

Largest 10 S&P 500 stocks outperformed by 4.9 percent per year over past decade, Meb Faber notes
Largest S&P 500 stocks reverse trend

Meb Faber highlights a notable shift in the performance of the largest stocks in the S&P 500 index. Since 1957, the top 10 stocks in the index have typically underperformed an equal-weighted group of the remaining 490 by 2.4 percent per year.

However, in the last decade, the largest 10 companies have outperformed dramatically, exceeding the rest by 4.9 percent per year according to Faber.

Faber has previously cautioned that speculating in U.S. stocks remains risky at all times, citing a humorous warning from Mark Twain in one post (article). He has also chronicled how the U.S. stock market endured significant events such as wars and recessions throughout the 20th century (article). These observations add context to his latest analysis of performance shifts among the S&P 500's largest companies.

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