Yesterday I kept a Diary throughout my entire process of reviewing the components of the S&P500. Many of you have written back with such nice things about that. I’m glad you enjoyed it. I think that in order to get the most out the research, it really helps to understand where I’m coming. This helps in the execution process, which is why we’re here right? To make money in the market for ourselves and/or for our clients.
Today I felt that a nice supplement to yesterday’s S&P500 work is a chart that shows what the S&P500 Equally weighted Index is doing relative to the S&P500 Market-cap weighted index. To me this is a good measure of whether or not we’re seeing broad-based participation or if it’s just the mega-cap names carrying the weight.