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Same Stocks, Different Stories

Matthew Allgood |

Historically, the S&P 500 and the S&P 500 Equal Weight have shown strong correlation, basically moving in the same direction at the same time. Recently, however, the correlation between these two has reached the lowest point ever. Indicating smaller stocks beginning to perform differently than larger stocks within the S&P 500.

 

This is why we maintain diversification within your portfolios ensuring resilience against unpredictable market movements. We remain vigilant in monitoring these risks to help you reach your financial goals.

 

 

Same Stocks, Different Stories

 

A graph showing the value of a stock market Description automatically generated

 

Source: Bloomberg, Redwood. Data as of 11/1/2024. Date range from 1/1/1990 – 10/31/2024.

 

 

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. Diversification of asset class is not a guarantee against loss.

 

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