In a previous article, we compared the S&P 500 index to an EquitiesLab macro, issandplike. Our goal was to analyze the S&P’s value, by comparing the official index’s performance with a collection of similar stocks. But what does “similar” mean in this case?
According to Standard & Poor’s website, an S&P stock must meet the following requirements.…
The S&P 500 has performed spectacularly over the last seven years. So spectacularly, in fact, that some find its performance hard to believe. Are the stocks that make up the S&P being cherry-picked to only show the most successful performers? If the contents of this benchmark are not selected organically, its usefulness is suspect.…