The Lagging S&P 100

The S&P 100 is an interesting index to watch. It’s the 100 largest companies in the S&P 100. It’s basically an index of mega-cap stocks.

While the mega-caps drove a lot of the 1990s rally, they’ve been lagging lately. Part of it is the impact of the strong dollar, but the underperformance started before that.

Here’s the S&P 100 compared with the S&P 500 since August 1, 2012:

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Relative to how those two usually perform, that’s a large divergence. Yet the lines really aren’t that far apart. The point I’m making is how much the S&P 500 is dominated by the S&P 100. I believe that S&P 100 comprises about 57% of the market cap of the S&P 500.

Posted by on April 6th, 2015 at 10:17 am


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