“History doesn’t repeat itself, but it often rhymes.”
– Mark Twain
What exactly is the best, or at least the most well-known, barometer of U.S. Large Company equity performance? The answer: Despite its many faults (more about those in a moment), most people who routinely traffic in such things would point to the S&P 500 Index. So, with the S&P currently hovering at or near bear market levels (a decline of 20% or more from the Index peak), the breathless anchors at CNBC and elsewhere would have us believe that the sky is falling in Chicken Little fashion. OK, the 2022 sledding has been a bit rough, and the reasons, e.g., inflation, rising interest rates, are not to be taken lightly. But, the math behind the S&P 500 suggests that the Index isn’t always the best indicator of what’s going on out there. In fact, there is another Large Company stock market in 2022, and so far the sky over that stock market has not been falling. Some background…
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