| Amazingly, the stock market appears to have recovered fromCOVID-19.
This means that about half did better than a 5 percent loss and half did worse.
The return of the S&P 500 was driven by a handful of stocks.
In fact, the four most valuable stocks in the index all had great to spectacular returns.
Those stocks as well as some others drove the return of the S&P 500.
I also own Tesla, up 438 percent.
But, so far this year, owning every stock was far better than owning the average stock.
Do you think that 2020 has been unusual?
How did the median stock do?
Take a guess:
A.
1,500 percent
C. 635 percent
D. 7 percent
The answer shocked me.
The median stock earned just 7 percent or a mere 0.22 percent a year.
(Median means half did better and half did worse.)
One stock can go to zero, but it’s highly unlikely that 3,000 will.
The bigger the stock, the bigger their impact on the index.
This year it has largely been the market’s behemoths that have chalked up the biggest gains.
I suspect that’s why the fund-research companyMorningstarawards both of these funds its highest forward-looking gold ratings.
There are only those who think they know.
Just confirm you own them with the lowest possible amount of risk by owning every stock.
