NYT Buries the Lede, Powell May Reassess Securities Purchases

by jiannone

Bulls okay?

Mr. Powell may also indicate the Fed’s thinking about its limitations — for example, whether it can continue to buy securities without consequence.

Also, 1% of S&P500 stocks account for 20% of its value.

According to data from Goldman Sachs, the top 10 stocks in the S&P 500 this month accounted for roughly 27 percent of the total value of the index. That surpassed the previous peak, which came during the tech stock frenzy of the late 1990s. The top five companies alone — Microsoft, Apple, Amazon, Alphabet and Facebook — account for 20 percent of the index.

Historically, investors funneling into a few stocks is bad, mmkay. NYT seems to think it’s not a problem.

he is betting that their financial stability will allow them to avoid layoffs and continue investing in product development and research during the downturn

What’s the consensus on the concentration of investment into fewer companies?

 

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.