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The S&P 493 is up 1% YTD!

The Standard and Poor’s (S&P) 500 is a popular stock market index that tracks the performance of 500 of the largest publicly traded U.S. companies.

Many busy professionals blindly contribute a portion of their hard earned wages each month into S&P 500 index funds, under the assumption that they are passively investing into a well diversified basket of blue chip companies. 

It was eye popping to us when we came across the graph below.  When you subtract out Facebook (META), Amazon (AMZN), Google (GOOGL), Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA), the remaining 493 of the largest U.S. companies only produced a 1% return year to date!  

Turns out the S&P 500 is not diversified at all when it comes to performance and is heavily concentrated in just a few richly valued large tech companies with low growth prospects!  (This is like buying commercial real estate at very low cap rates with low NOI growth.)

The S&P 493 is up 1% YTD!

While we would never discourage anyone from investing in the stock market, it is more prudent than ever to consider having a portion of your total portfolio in alternative investments like recession resistant multifamily syndications where Break of Day Capital is a specialist, which offer potentially high returns with lower volatility.

Kindly email Joe at JOSEPH@BREAKOFDAYCAPITAL.COM  should you have questions.   

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