Search Results for: diversification

The S&P 500’s Lack of Diversification – S&P 5 vs. S&P 495 As this chart hightlights, the S&P 500 is less diversified than you think. Image: Lohman Econometrics

The Value of Diversification – 60/40 Portfolio vs. S&P 500 This chart shows the return and volatility of a 60/40 portfolio vs. S&P 500. Image: Fidelity Investments

Time, Diversification and the Volatility of Returns This chart shows how the volatility of returns decreases over time (range of equity, bond and blended total return). Picture Source: J.P. Morgan Asset Management

Seven Largest Companies as Share of S&P 500 Total Market Capitalization The concentration of the seven largest stocks in the S&P 500 raises concerns about diversification and market stability, as potential risks emerge if these stocks underperform. Image: Goldman Sachs Global Investment Research

Top 5 Stocks as % of S&P 500 Market Capitalization The S&P 500 remains more concentrated in the five largest stocks than during the dotcom bubble, posing potential risks if these stocks underperform and raising concerns about diversification and market stability. Image: Morgan Stanley Wealth Management

Top Five Companies % of S&P 500 Market Capitalization The concentration of the S&P 500 in the five largest stocks remains higher than it was during the dot-com bubble, which is seen as a potential risk, as it can lead to increased market volatility and a lack of diversification. Image: BofA US Equity & Quant…

S&P 500 – Top 10 U.S. Companies by Market Capitalization Relative to Total The top 10 U.S. companies represent approximately 35% of the S&P 500 Index in terms of market capitalization, which can be a concern for investors in terms of diversification. Image: Morgan Stanley Wealth Management

Equity Total Returns Geographic diversification hurt equity performance last year. Image: Richardson Wealth

Total Real Return of $1000 Investment with Dollar Cost Average vs. S&P 500 Valuations Diversification does not always work and valuations matter. The S&P 500 can take a very long time to recover from a bear market. Image: Real Investment Advice

20-Year Annualized Returns by Asset Class The average American investor still underperforms the market over the long term, generally due to panic selling, emotional biases, the herding effect and lack of diversification. Image: J.P. Morgan Asset Management