Is The S&P 500 Too Concentrated？

#sp500 #fundamentalsoffinance Is The S&P 500 Too Concentrated? Basically every investing influencer says to just buy S&P 500 index funds. But that’s because they don’t actually know anything about investing. Telling someone who wants to invest to “just put it in an S&P 500 index fund” is like telling someone who wants to get in shape to “just go on a diet.” OK… but can you be a little more specific? Most influencers can’t. In reality, there’s nothing wrong with owning an S&P 500 ETF or index fund. There’s also nothing wrong with eating broccoli… but if that’s ALL you eat, you’re not actually going to be that healthy. It’s the same with investing… SO MANY articles want to question if the S&P 500 has become too concentrated. And yes, the Magnificent 7 stocks drove about 2/3 of the S&P 500’s return last year, and tech has become a bigger part of the index… it’s an interesting discussion to have but for most investors, it’s the wrong question. It’s missing the forest through the trees. The S&P 500 isn’t too concentrated because of what’s inside it. It’s too concentrated because what’s NOT inside it. #fundamentalsoffinance #sp500