S&P 500

Discussion of the Stock portion of the Permanent Portfolio

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I Shrugged
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S&P 500

Post by I Shrugged » Tue Oct 29, 2019 6:50 pm

It has been brought to my attention that the 6 FANG+ stocks make up 19% of the index cap.
Yikes.
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Tortoise
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Re: S&P 500

Post by Tortoise » Tue Oct 29, 2019 7:32 pm

Has that not always been the case for the top 5 or 6 stocks in the S&P500? I.e., did market cap used to be less concentrated at the top?
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ochotona
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Re: S&P 500

Post by ochotona » Tue Oct 29, 2019 8:47 pm

You know what is amazing? How close market cap SPX funds and equal weight SPX funds like RSP are in performance over the last year, even though the latter has 1/500 slices of every company in the SPX. It's downright eerie.
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Re: S&P 500

Post by mathjak107 » Wed Oct 30, 2019 4:29 am

about 50 stocks dominate the entire wilshire 5000 , those 50 stocks can be extremely powerful and dominating .
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sophie
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Re: S&P 500

Post by sophie » Wed Oct 30, 2019 8:52 am

You still get good diversity with an index fund, but I wonder how much better than buying and holding a basket of stocks it really is. In the new era of zero commissions, this might be worth a rethink. You'd want to buy and hold as opposed to constantly rebalance though. I bet we will start seeing some opinion pieces soon on this.
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Re: S&P 500

Post by jalanlong » Wed Oct 30, 2019 9:20 am

sophie wrote:
Wed Oct 30, 2019 8:52 am
You still get good diversity with an index fund, but I wonder how much better than buying and holding a basket of stocks it really is. In the new era of zero commissions, this might be worth a rethink. You'd want to buy and hold as opposed to constantly rebalance though. I bet we will start seeing some opinion pieces soon on this.
Or at least move to an equal weight fund. GSEW has 500 stocks equal weighted for .09 expense ratio.
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ochotona
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Re: S&P 500

Post by ochotona » Wed Oct 30, 2019 9:32 am

jalanlong wrote:
Wed Oct 30, 2019 9:20 am
sophie wrote:
Wed Oct 30, 2019 8:52 am
You still get good diversity with an index fund, but I wonder how much better than buying and holding a basket of stocks it really is. In the new era of zero commissions, this might be worth a rethink. You'd want to buy and hold as opposed to constantly rebalance though. I bet we will start seeing some opinion pieces soon on this.
Or at least move to an equal weight fund. GSEW has 500 stocks equal weighted for .09 expense ratio.
Wow, thanks, GSEW seems to out-gun RSP.
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Re: S&P 500

Post by jalanlong » Wed Oct 30, 2019 10:08 am

sophie wrote:
Wed Oct 30, 2019 8:52 am
You still get good diversity with an index fund, but I wonder how much better than buying and holding a basket of stocks it really is. In the new era of zero commissions, this might be worth a rethink. You'd want to buy and hold as opposed to constantly rebalance though. I bet we will start seeing some opinion pieces soon on this.
I subscribe to a lot of different financial boards and in the last year I have seen more and more people who seem to be on board with that. Perhaps it is the amount of brokers now that do not charge commissions and allow fractional share purchases.

A very popular trend I see is people buying 30-50 dividend growth stocks and just having that and cash, no bonds or gold. They say they ignore the market price fluctuations and just look at the (hopefully) increasing stream of dividends and are just creating their own cash flow/pension for later in life.
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Re: S&P 500

Post by vnatale » Wed Oct 30, 2019 10:13 am

No concerns that all those dividends create taxes?

Vinny
jalanlong wrote:
Wed Oct 30, 2019 10:08 am
sophie wrote:
Wed Oct 30, 2019 8:52 am
You still get good diversity with an index fund, but I wonder how much better than buying and holding a basket of stocks it really is. In the new era of zero commissions, this might be worth a rethink. You'd want to buy and hold as opposed to constantly rebalance though. I bet we will start seeing some opinion pieces soon on this.
I subscribe to a lot of different financial boards and in the last year I have seen more and more people who seem to be on board with that. Perhaps it is the amount of brokers now that do not charge commissions and allow fractional share purchases.

A very popular trend I see is people buying 30-50 dividend growth stocks and just having that and cash, no bonds or gold. They say they ignore the market price fluctuations and just look at the (hopefully) increasing stream of dividends and are just creating their own cash flow/pension for later in life.
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Re: S&P 500

Post by Xan » Wed Oct 30, 2019 10:16 am

vnatale wrote:
Wed Oct 30, 2019 10:13 am
No concerns that all those dividends create taxes?

Vinny
jalanlong wrote:
Wed Oct 30, 2019 10:08 am
sophie wrote:
Wed Oct 30, 2019 8:52 am
You still get good diversity with an index fund, but I wonder how much better than buying and holding a basket of stocks it really is. In the new era of zero commissions, this might be worth a rethink. You'd want to buy and hold as opposed to constantly rebalance though. I bet we will start seeing some opinion pieces soon on this.
I subscribe to a lot of different financial boards and in the last year I have seen more and more people who seem to be on board with that. Perhaps it is the amount of brokers now that do not charge commissions and allow fractional share purchases.

A very popular trend I see is people buying 30-50 dividend growth stocks and just having that and cash, no bonds or gold. They say they ignore the market price fluctuations and just look at the (hopefully) increasing stream of dividends and are just creating their own cash flow/pension for later in life.
Vinny, have you noticed that nobody else here does top-posting, and when you do, it makes conversations difficult to read?
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Re: S&P 500

Post by vnatale » Wed Oct 30, 2019 10:26 am

Had not noticed.

However, my preference is that all did the same as I do since I view the latest as new material and the prior as footnotes.

Part of my being in independent in many ways.

Vinny
Xan wrote:
Wed Oct 30, 2019 10:16 am
vnatale wrote:
Wed Oct 30, 2019 10:13 am
No concerns that all those dividends create taxes?

Vinny
jalanlong wrote:
Wed Oct 30, 2019 10:08 am


I subscribe to a lot of different financial boards and in the last year I have seen more and more people who seem to be on board with that. Perhaps it is the amount of brokers now that do not charge commissions and allow fractional share purchases.

A very popular trend I see is people buying 30-50 dividend growth stocks and just having that and cash, no bonds or gold. They say they ignore the market price fluctuations and just look at the (hopefully) increasing stream of dividends and are just creating their own cash flow/pension for later in life.
Vinny, have you noticed that nobody else here does top-posting, and when you do, it makes conversations difficult to read?
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Xan
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Re: S&P 500

Post by Xan » Wed Oct 30, 2019 10:44 am

vnatale wrote:
Wed Oct 30, 2019 10:26 am
Had not noticed.

However, my preference is that all did the same as I do since I view the latest as new material and the prior as footnotes.

Part of my being in independent in many ways.

Vinny
Xan wrote:
Wed Oct 30, 2019 10:16 am
vnatale wrote:
Wed Oct 30, 2019 10:13 am
No concerns that all those dividends create taxes?

Vinny

Vinny, have you noticed that nobody else here does top-posting, and when you do, it makes conversations difficult to read?
I don't think it's realistic to expect everyone else to change, but if you're okay with people having trouble reading posts you participate in, okay by me.

I'm not sure it qualifies as "independent" if you want everybody else to do things the way you do them, though.

The quoted bits are the part being replied to, so it's like having a recap of last week's episode at the start of the new episode instead of after it.
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