alt Hacker NewsThe 'S&P 493' reveals a different U.S. economy
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So a viable strategy would be to only buy the best 7 stocks? Like the Dogs of the Dow, but reversed? (The Gods of the Dow?)
The stock market has been dominated by a single industry many times in history: railroads (Union Pacific), oil (Standard Oil, later Exxon), steel (U.S. Steel), banking (JPM), industrials (GE), telecom (ATT), computer hardware (IBM, MSFT, Intel), smartphones (Apple), consumer internet (Facebook, Google, Amazon) and now "AI" (Nvidia, Magnificent 7).
Isn't the interesting question now: what follows? Or does history end with Mag7?
So if we look at companies that didn't do as well, we find that they didn't do as well as those that did really well?
Different than when the railroads dominated the market, or the industrials dominance in the 20s and 30s, or the nifty fifty, or the communication dominance in the late 90s?
Does the S&P 493 reveal a different economy or does it reveal that the author published an article based on feelings instead of research?
In previous years, I could have excused such shoddy journalism. In the age of LLMs that can do the work for you, it’s inexcusable that the author didn’t pick 3-5 sample strong economies from the past to judge today by.
I remember reading this headline and then going and looking at the XMAG index[0].
YTD: +15.5%
1 year: +9%
Since inception (Oct 2024): +14%
Comparing that with S&P500
YTD: +16.7%
1 year: +13%
Since XMAG inception: +18%
The article should start with such a comparison but it just seems like a lot of text with very little numerical comparison, which makes it not very useful to conclude what the case is.
0: https://www.defianceetfs.com/xmag/