The S&P 500 Is More Concentrated Than Ever, and That's Historically Bad News for Wall Street
For well over a century, Wall Street has provided a pathway for everyday investors to build their wealth. The annualized returns for the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S 500 (SNPINDEX: ^GSPC), and growth-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC) have easily outpaced the annualized returns of bonds, housing, and commodities spanning multiple decades.
However, short-term directional moves in the major stock indexes are considerably harder to predict as evidenced by all three major indexes vacillating back and forth between bull and bear markets since this decade began.
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Source Fool.com