article thumbnail

10 Bad Takes On This Market

The Big Picture

How bad at math do you need to be to think that it’s only 5 stocks driving this market? Russell 2000 is the big laggard in 2023, and has been much of the year. Only 5 stocks driving markets?! Then why are Equal-weighted indices doing so well? Recession is inevitable? Rally faltering Nasdaq is having a banner, nearing ATH (15.7%

Marketing 289
article thumbnail

You can’t handle the truth – Do the Math on the 2023 Bull Market

David Nelson

Do the Math Let’s do the math. What better index than the Russell 3000, which includes the Russell 1000 big cap universe and the Russell 2000 small cap index. Okay, let’s go there.

Math 52
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

10 Tuesday AM Reads

The Big Picture

My Two-for-Tuesday morning train WFH reads: • Stock Pickers Never Had a Chance Against Hard Math of the Market : In years like this one, when just a few big companies outperform, it’s hard to assemble a winning portfolio. 2000-2003 Dotcom implosion 6. Businessweek ) but see With cash earning 5%, why risk money on the stock market?

Insurance 130
article thumbnail

The March to a $10 Trillion Company

Validea

In 2000, General Electric accounted for over 5% of the S&P 500 ( source ). The Math Behind the Growth Let’s take a step back and think about what it would take for a company like Apple to reach a $10 trillion market cap. In 2000, the total value of the US stock market was $15.1

Math 109
article thumbnail

60/40 Is Dead! Long Live 60/40!

Random Roger's Retirement Planning

Yields were kind of low in the mid 2000's before the financial crisis which was part of the story for why I started to use liquid alternatives (that term didn't exist yet), bond substitutes and bond proxies. The above is why I've taken to referring to bonds as sources of unreliable volatility.

article thumbnail

Wow, have you seen the stock market lately?

Mr. Money Mustache

For example, if the house brings in $2000 per month ($24,000 each year) and the sale price is $240,000, the next investor is buying a business with a price-to-earnings ratio of 10, because 240k/24k=10. Its just basic math. But if you manage to convince someone to hand over $480,000 for that same house, youve sold at a P/E of 20.

article thumbnail

Is Gen-X Doomed?

Random Roger's Retirement Planning

A good decision about their mortgage way back when could see someone in their early 50's paying off a 15 year mortgage (taking out a 15 year being the good decision) and now has $1000 to maybe $2000 a month for additional savings. If it is going to happen, it won't be for ten years +/-, plenty of time to factor that into your math.