Nikhil Gharat’s Post

This market isn’t what you think. It’s being driven by a few big names. Typically hearing when hearing ‘Stock Market’ we all think of a huge basket of stocks. They all go up or down and together determine where the market goes. The main stock market index, S&P500, even has the number of stocks in its name. But - remember, not all 500 are weighted equally. Right now, the top three stocks = 20% of the index The top stock this year has contributed over 1/3 of the index’s performance. The same index re-weighted to make all 500 stocks equal is up much less than 1/2 the actual index this year. The largest 10 stocks have valuation that are almost double the other 490. So is it really a Market? Maybe it’s two. Owning the Market may not be what you think. #stockmarket #investing #personalfinance

Investor prefer to buy single/few stocks because it is a good storytelling opportunity for them about a particular company in a cocktail parties and among their family and friend circle. But historical data dictates otherwise about holding individual/few stocks. Very few stocks which can be count on fingers perform well for long enough time in the history around the world. The academics analyzed long-run shareholder outcomes for more than 64,000 global common stocks between January 1990 and December 2020. They found that the top-performing 2.4% of firms account for all of the $75.7 trillion in net global stock market wealth creation over that timeframe. Outside the US, 1.41% of firms account for the $30.7 trillion in net wealth creation. (Source: Nicholas Colas, co-founder of DataTrek Research, highlighted in a blog that an academic paper, ‘Long-term shareholder returns: Evidence from 64,000 global stock) Here in our market; even after a good rally in equities in past 10 years around 30%-40% stocks failed to beat their respective benchmark forget about producing exceptional returns and thing will become murkier when indexes will start giving muted or negative returns for a reasonable period of time.  #kaizencapital #stocks #investing #diversification

The Zacks Focus List model portfolio provides 50 stocks set to beat the market—with the confidence of knowing that these picks are all based on proven research.   Every stock on the list is hand-picked by our Director of Research, Sheraz Mian, based on our award-winning research.   Since its inception in 1996 through February 2024, the 50-stock Zacks Focus List has an annualized return of +13.37%, compared to +9.51% for the equal-weight S&P 500 index. Learn more and get detailed research reports for two stocks on the Focus List at https://lnkd.in/g5mNDEbv #InvestmentSuccess #ExpertPicks #AwardWinningResearch #ZacksFocusList #HighReturnInvesting #StockMarketAnalysis #HandpickedStocks

5 Broker-Loved Stocks to Keep an Eye on in the Current Scenario https://ift.tt/xy1Sv8e The U.S. equity markets are in good shape driven by the artificial intelligence rally. The tech-heavy Nasdaq Composite gained 18.1% in the year's first half. The S&P 500 gained 14.5%, while the tech-light Dow Jones index appreciated only 3.8%. The decline in inflation is another major tailwind. read more via Benzinga - Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals https://ift.tt/Vk1EZvt July 02, 2024 at 01:33PM

If you didn't do as well as the market in 2023, don't beat yourself up. The top 10 stocks greatly carried both the S&P 500 and the Nasdaq. In fact the average return for the top 10 stocks was 85.6% versus 16% for the other 490 companies. This meant that these top 10 stocks accounted for 63% of the index's return for the year. Over the past 30 years, the top 10 stocks have on average represented 24% of the index's growth. I do continue to worry many of these top 10 stocks could be a drag on the index and people's portfolios considering their lofty valuations. #stock #stockmarket #investing #investments #nasdaq #portfolio #index #indexgrowth #useconomy #economy #finances #invest

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Since May 2021, U.S. stocks have become 19% cheaper based on valuation metrics. Back in May 2021, the price-to-earnings (P/E) ratio stood at 33.1x. Today, that figure has decreased to 26.7x, a notable 19% drop in valuation. However, despite this decline in P/E, the stock market has rallied by 38% over the same period. How is this possible? The answer lies in earnings growth, not mere speculation. Companies have significantly increased their profits, helping to justify higher stock prices even as valuations have moderated. While stocks remain expensive by historical standards, the rally has been fundamentally driven by stronger earnings rather than speculative excess, underscoring the resilience of corporate performance in supporting the market's rise. #fixedincome #valueinvesting #investmentstrategies #investmentexpert #investment #stockmarket #stock #bond #corporatebond #highyieldbond #cashflow #assetmanagement #wealthmanagement #fixedincome #valueinvesting #investmentstrategy #investmentexpert #investment #stockmarket #stock #bond #corporatebond #highyieldbond #cashflow #assetmanagement #wealthmanagement

If you didn't do as well as the market in 2023, don't beat yourself up. The top 10 stocks greatly carried both the S&P 500 and the Nasdaq. In fact the average return for the top 10 stocks was 85.6% versus 16% for the other 490 companies. This meant that these top 10 stocks accounted for 63% of the index's return for the year. Over the past 30 years, the top 10 stocks have on average represented 24% of the index's growth. I do continue to worry many of these top 10 stocks could be a drag on the index and people's portfolios considering their lofty valuations. #stock #stockmarket #investing #investments #nasdaq #portfolio #index #indexgrowth #useconomy #economy #finances #invest

In the first half of the year, large-cap stocks carried the market. But the tables have now turned. Small-cap stocks have rallied over 9%, compared to just over 2% for the S&P 500, and less than 1% for the NASDAQ 100. Performance is broadening across the equity market—but why now? In this week’s #TopMarketTakeaways, we assess the fundamentals, the technicals and the political landscape, and what it all means for investors. https://bit.ly/4d3SexY

In the first half of the year, large-cap stocks carried the market. But the tables have now turned. Small-cap stocks have rallied over 9%, compared to just over 2% for the S&P 500, and less than 1% for the NASDAQ 100. Performance is broadening across the equity market—but why now? In this week’s #TopMarketTakeaways, we assess the fundamentals, the technicals and the political landscape, and what it all means for investors. http://spr.ly/6041ivRMW