HAVE YOU EVER CONSIDERED DIVERSIFYING YOUR PORTFOLIO?
Given the high risk nature of trading, having a finger in every pie is a good idea. Stocks generally are less volatile than crypto, and index funds are a great way to gain exposure to a variety of top notch stocks.
If you have ever wondered about trading stonks, today's update is for YOU. Cryptocurrencies are the largest part of our focus, but that doesn't mean we don't consider other markets such as forex, commodities and stocks. So today, let's take a look at the SPX / S&P 500.
Index investing, especially in the S&P 500, streamlines stock market engagement. Investing here means tapping into America's corporate giants, offering long-term returns and simplicity, often outperforming active stock picking. Since 1957, the S&P 500 has offered a global economic snapshot, including key international corporations. Its careful selection process reflects market trends, focusing on criteria like market cap and liquidity.
The top 4 stocks in the SPX by weight are : 1) Microsoft Corporation / MSFT 2) Apple Inc. / AAPLE 3) Nvidia Corp / NVDA 4) Amazon.com Inc. / AMZN
# Company Portfolio% 1 Microsoft Corp 7.14% 2 Apple Inc. 6.36% 3 Nvidia Corp 4.24% 4 Amazon.com Inc 3.65%
To put it into perspective, the last 4 stocks are: 500) NWL / Newell Brands Inc. Producer Manufacturing 501) DXC / DXC Technology Company Technology Services 502) AAP / Advance Auto Parts Inc. Retail Trade 503) TPR / Tapestry, Inc. Retail Trade / with a market cap of 4,017,225,400
(There are actually 503 stocks in the S&P500).
From the above, we can clearly conclude that what happens in those top 4 markets, holds quite a lot more weight than the rest. This should give you a clue which ones to look at if you want to invest in additional stocks and not necessarily a fund.
To correctly identify the macro phase is to have power - this will eliminate fear and greed, and cancel out the noise you hear from news and "influencers". Looking at SPX from a monthly perspective, we can clearly identify a strong bullish trend as the market loses makes what seems to be UP ONLY and keeps on making higher highs. By using the S&P 500 or the VTI , you can more easily spot the macro trend of the stock market, and which way MOST of the stocks will go, especially the top few.
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