“Invest for the long-term,” “buy-and-hold,” “stay diversified,” are the mantra of every asset-gathering commission-taking ‘manager’ out there… However, as JPMorgan notes, empirically that is a loser’s bet. In fact, investors owning just the top 10 performers of the S&P 500 has never suffered a single rolling 12 month period loss (lowest was April 2009 0.24%).
Getting a few key calls correct this cycle (Apple, Google, Facebook, Amazon, Microsoft, Gilead, etc.) meant the difference between outperforming or lagging the index. For instance, if one were to strip out just the top 10 contributors to the S&P 500 over the last year, the index would have a negative total return (vs. 3.6% YTD as of 12/4).
This post was published at Zero Hedge on 12/07/2015.
Follow on Twitter
Recent Comments