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S&P 500 is a Capitalization-Weighted Index meaning the larger companies make up much more of a percentage of the index. And in this environment companies that a
by andymoe 6y ago
S&P 500 is a Capitalization-Weighted Index meaning the larger companies make up much more of a percentage of the index. And in this environment companies that are large with lots of cash are in a super good position and people are fleeing to them for safety. So their prices rise (a lot in some cases... see Amazon) and so the S&P 500 goes back up a lot. It is worth noting it’s still down like 400 points for the year though.
- rotterdamdev 6y agoIt won't be worth jackshit when you have the estimated 40 million unemployed by Q3. Expect things to crash and burn as people will stop buying the products of these large corporations. I expect amazon stocks to skyrocket, which is fucking sad considering how harmful they are to local economies. But I agree with your assessment.