Only Four Stocks Account for 20 Percent of the S&P 500’s Gain This Year

Just four out of the 500 stocks in the index are responsible for the bulk of profits so far this year. This has broad implications when measuring the performance of your portfolio relative to the S&P 500. Listen to Ric Edelman dissect the market’s performance this year and illuminate an interesting pattern that he hasn’t seen in more than a decade.

Investing strategies, such as asset allocation, diversification, or rebalancing, do not assure or guarantee better performance and cannot eliminate the risk of investment losses. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies. Funds and ETFs are subject to risk, including loss of principal. All investments have inherent risks. There can be no assurance that the investment strategy proposed will obtain its goal. Past performance does not guarantee future results.

An index is a portfolio of specific securities (common examples are the S&P, DJIA, NASDAQ), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. Past performance does not guarantee future results.