The 25% return of the S&P 500 in 2024 marked a second consecutive year of over 20% returns. Gains continued to be concentrated in a small number of mega-cap tech names with six stocks responsible for over half the return of the index. NVIDIA alone contributed 5.4 percentage points, or over 1/5th of the total return of the S&P 500. The average stock in the index returned 13.0% – still a respectable result, but indicative of how difficult it was to keep up with the index without full exposure to this small group of stocks. The Russell 1000 Growth Index had just four stocks – NVIDIA, Apple, Amazon.com and Meta – deliver over half its return.
You don’t get rewarded for taking risk, you get rewarded for buying cheap assets.– Jeremy Grantham
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4th Quarter 2024 Market Commentary
The 25% return of the S&P 500 in 2024 marked a second consecutive year of over 20% returns. Gains continued to be concentrated in a small number of mega-cap tech names with six stocks responsible for over half the return of the index. NVIDIA alone contributed 5.4 percentage points, or over 1/5th of the total return of the S&P 500. The average stock in the index returned 13.0% – still a respectable result, but indicative of how difficult it was to keep up with the index without full exposure to this small group of stocks. The Russell 1000 Growth Index had just four stocks – NVIDIA, Apple, Amazon.com and Meta – deliver over half its return.
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