The S & P - Then and Now
I don't usually pay much attention to the S&P other than as an indicator of general market sentiment, but was curious about something.
I know there have been a number of changes over the past year, year and a half, two years; but don't really know it there has been a significant number of stocks removed with others added.
If it has been a significant number, how would this affect the comparision of where the S&P was then, to where it is now?
It would take someone with a whole lot more time and technical expertise than I have to do a meaningful analysis ot this, but would be very interested in seeing what it might reveal.
Are we comparing apples to apples, or apples to oranges? Has it gone up as much as it seems from its low point, or down as much as it seems from its high point?
When we see comments like "it has run up too much and is poised for a correction", or that "it has lots more room to run": are these assumptions based of a false comparison to what was, or is it reasonable to assume that the S&P as it is constitued today, is the same as it was constituted then. When ever then was.
If anyone is up to the challenge, I would love to see what you find.
Notice that I did not volunteer to do this work.
Have a nice evening.