Time Tends to Get the Best of Most Companies

A small handful of stocks are contributing to the bulk of the S&P 500 Index’s return this year. Although it may feel extreme at times, it’s not entirely abnormal. If we look back over the past 80 years, less than 4% of the companies in the S&P 500 have contributed to 50% of the wealth creation. So while it may appear narrow, and it is, it’s not as narrow as it may seem when you look at it in a historical context.