- Let’s uncover ways to safeguard your portfolio gains amidst the spotlight shining on 6 major stocks that make up 30% of the S&P 500 and a staggering 40% of the Nasdaq.
- While history may label June as a dubious month for stocks, this year’s narrative could redefine that storyline.
- Keep a watchful eye on Nvidia’s trajectory post its stock split announcement for potential market ripples.
The S&P 500 sprung a surprise by concluding May with an almost 5% surge. A feat achieved merely six times in the last 40 years.
A peek into historical data unveils promising insights into the market’s trajectory in the approaching months:
- June: A strong May often paves the way for a positive June for the S&P 500, historically yielding an average increase of 1.2% in five out of the six instances.
- Full Year: Following a robust May, the S&P 500’s average annual return skyrockets to a noteworthy 8.6%.
A Mid-Year High from Election-Year Magic?
Interestingly, June and August, usually dim periods for the markets, transform during election years, boasting an average return of about 1.3% each.
Domination Peaks: The Rising S&P 500 Concentration
At present, a mere six entities – Microsoft, Apple, Nvidia, Alphabet, Amazon, and Meta Platforms – command a staggering 30% of the S&P 500, echoing their dominance across other major indices with a striking 18% on , and an astonishing 40% on Nasdaq.
Comparatively, over the past three decades, the collective weight of the top 6 S&P 500 companies averaged a mere 10%. Even the tech bubble of 2000 saw a zenith of 20%, showcasing that past powerhouses like Cisco, Intel, General Electric, Exxon Mobil, and Walmart paled in comparison to today’s “Big 6.”
Scrutinizing the top holdings of hedge funds by Q1’s end underscores the shift; once-flagship figures like Tesla and Apple are conspicuously absent.
Strategic Moves in the Era of S&P 500 Dominance?
Position yourself strategically by exploring the Roundhill Magnificent Seven ETF, offering a convenient avenue to ride alongside these heavyweight champions.
Launch your foray into the Magnificent Seven with MAGS – inaugurated in April 2023, this ETF mirrors the market’s top guns, ensuring equitable exposure through quarterly rebalancing.
Nvidia Ascends Post Stellar Results and Upcoming Split
Bolstered by stellar earnings and an impending 10:1 division, Nvidia’s price soars post-announcement detailing a 150% dividend surge alongside market-beating performances.
The impending stock split aims to democratize ownership, making shares more accessible and enticing for a broader investor base.
However, historical statistics offer a nuanced perspective. While split announcements traditionally induce bullish sentiments with a 24% average surge a year later, it’s crucial to note 30% of companies witness negative returns in the same timeframe.
2024 Stock Exchange Standings Unveiled
Behold the pecking order of the leading bourses in 2024 to date:
- Japanese Market: 16.01%
- Italian Exchange: 14%
- Spanish Market: 12.6%
- Nasdaq: 11.5%
- German Exchange: 11%
- 10.8%
- S&P 500: 10.6%
- British Market: 7.01%
- Chinese Exchange: 6.06%
- French Market: 5.96%
- 2.1%
Market Pulse Through Investor Sentiments (AAII)
Bullish whispers, anticipating a market uptick in the next six months, linger at 39% – topping its 37.5% historical average.
Contrastingly, bearish undertones, projecting a dip in stock prices over the next half-year, dwell at 26.7%, sailing below the 31% historical average.
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Disclaimer: This article serves for informational purposes solely; refraining from solicitation, tips, guidance, or urging to invest, it’s crucial for investors to tread the investment path cautiously, acknowledging the multifaceted evaluation and inherent risks linked to any asset type.