It’s hard to believe that the S&P 500 is down just ~13.5% from its high. This was a common response to my post yesterday. It feels a lot worse.
The average stock in the S&P 500 is in a 21.8% drawdown, so it’s understandable why the first number feels off. The thing is, the index is market cap-weighted, so the average decline and the index decline rarely line up.
Let’s examine why it feels so much…
The average stock in the S&P 500 is in a 21.8% drawdown, so it’s understandable why the first number feels off. The thing is, the index is market cap-weighted, so the average decline and the index decline rarely line up.
Let’s examine why it feels so much…
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