INVESTORS PAY ATTENTION TO NVIDIA, APPLE, AND MICROSOFT DIVERGENCE; ELECTION SHOCK IN FRANCE
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Market Cap Divergence
Please click here for a chart of S&P 500 Equal Weight ETF (RSP) compared to S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows that for the period shown on the chart, equal weighted S&P 500 has lost 1.94%, while cap weighted S&P 500 has gained 6.96%. This indicates that S&P 500 is being driven by mega caps.
- Investors need to be mindful that the top ten stocks in S&P 500 by capitalization are responsible for 35% of the market capitalization.
July 8, 2024