The S&P5 vs S&P495

SHANE DUBIN - Aug 05, 2020
We wanted to share the chart below to provide some perspective on how different businesses in the stock market are doing during Covid-19.

 

We wanted to share the chart below to provide some perspective on how different businesses in the stock market are doing during Covid-19.

 

The 5 largest companies in the US – Amazon, Apple, Facebook, Microsoft and Google – have returned an average of 35% in 2020, while the remaining companies in the US market are actually down 5% on average this year. The chart helps explain the disconnect between the economy and stock market.

 

Our allocation to large technology companies in the US has allowed us to participate in this run-up while our dividend-paying positions should continue to provide us with consistent and conservative growth in the years to come.