Top 10 Mega Cap Stocks as % of S&P 500 The S&P 500’s heavy dependence on its top 10 stocks makes it susceptible to substantial risks, which are primarily influenced by the performance of these select companies. Image: Real Investment Advice
Small Cap Stocks vs. Large Cap Stocks Small caps are currently viewed as an attractive investment opportunity compared to large caps, with several factors suggesting potential outperformance over the next decade. Image: BofA Global Research
Small Cap Stocks – Relationship Between Relative Fwd P/E of Russell 2000 vs. Russell 1000 and Subsequent 10-Year Annualized Relative Returns For long-term investors, periods when small-cap stocks are trading at a significant discount to large-cap stocks may offer attractive investment opportunities. Image: BofA US Equity & Quant Strategy
S&P 500 – Largest 7 Stocks vs. Rest of Index Investing heavily in the largest seven U.S. stocks in a portfolio tends to underperform the rest of the S&P 500 index over the long term, potentially leading to a negative alpha. Image: Ned Davis Research
Percentage of S&P 500 Stocks Above 200-Day Moving Average The percentage of S&P 500 stocks above their 200-day moving average is showing signs of a bearish divergence, which can be an early warning signal of a potential market correction. Image: BofA Global Research
The Five Largest Stocks in the S&P 500 The concentration of the S&P 500 in the 5 largest stocks is higher than it was 60 years ago, which is considered a potential risk, as it may result in increased market volatility and a lack of diversification. Image: Bianco Research
Top 10 Stocks as % of S&P 500 In recent years, there has been a substantial rise in concentration among the top 10 companies in the S&P 500, which has raised concerns about potential risks to investors. Image: Goldman Sachs Global Investment Research
30 Largest Stocks as a Percentage of S&P 500 Market Capitalization The 30 largest stocks account for 53% of the S&P 500’s total market capitalization, raising concerns about the index’s concentration and potential risks. Image: Morgan Stanley Wealth Management
S&P 500 Stocks Net Call Volume Are investors and traders too optimistic? Megacap growth and tech call buying volume is at its highest level on record. Image: Deutsche Bank Asset Allocation
ISM Manufacturing PMI and Global Stocks vs. Government Bonds In a potential shift from a “no” to a “hard” landing scenario, government bonds may outperform due to increased risk aversion, interest rate cuts, lower inflation expectations, and their historical performance during economic downturns. Image: BofA Global Investment Strategy