For two years, Wall Street has called for buying to shift from small-cap stocks to large-cap stocks. Large-cap stocks have barely gained 2% average return for the past five years. Possibly we’ll see momentum shift to blue chips when the current correction subsides.
Chet Currier from Bloomberg points out that the 10 stocks with the greatest weight in the S&P 500 may be the most unloved stocks in America. “This rogues’ gallery, as of mid-May, were (in order
of prominence in the index): Exxon Mobil, General Electric, Citigroup,
Bank of America, Microsoft, Procter & Gamble, Pfizer, Johnson &
Johnson, American International Group and JPMorgan Chase.”
The S&P 500 SPDRs (SPY) may once again regain its day in the sun.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.