Dear Chart of the Day Fan:
Here’s my chart for today. I’ll talk about it shortly after 3:30 p.m. Eastern (12:30 p.m. Pacific) on the Bloomberg Businessweek radio show. Also, I’ll present my Stock of the Day just after 4:05 p.m. (1:05 p.m.) on the radio and later on social media. You can hear me on Bloomberg Radio or see me at Bloomberg Global News on YouTube. Earlier charts are on my Tumblr page.
Thanks for your interest. It’s appreciated.
The S&P 500 Index’s biggest companies are far from regaining the strength they showed 20 years ago. That’s evident from the ratio between the S&P 500 and an equally weighted version, which counts each stock the same. The ratio tumbled 53% between March 2000 and April 2015 on a total-return basis, which includes dividends, according to data compiled by Bloomberg. Since then, the gauge has only recouped about a fifth of its decline. “Long-term history isn’t necessarily kind to owning mega cap” stocks, Jim Reid, a global strategist at Deutsche Bank AG, wrote Tuesday in a note with a similar chart.
Stocks Editor, Bloomberg RadioEditor, Chart and Stock of the DayStock of the Hour, Bloomberg Television
Author, Visual Guide to Financial Markets