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Perhaps, we'll see. The market is purely speculative, and reflects where investors believe things are going. At the moment, the stock prices of health care are
by bhupy 7y ago
Perhaps, we'll see. The market is purely speculative, and reflects where investors believe things are going.
At the moment, the stock prices of health care are up +5%, consumer staples +6.5%, and information technology +8.5%. Energy is down -50%, consumer discretionary -27%, and financials -22%. Due to this, the composition of the S&P500 has dramatically changed, most of its underlying capital is now in higher priced assets in the former list, rather than the lower priced assets in the latter list. Because the S&P500 is a capitalization-weighted index, the total market value reflects this.
Honestly this is all just a giant advertisement for investing in index funds.