SP500 record and portfolio management

Aug 22, 2020 | Jeremy Goldfarb


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It appears that I am exhausting the same topic over and over again, but I assure you there is a point to all of this. Another excellent SP500 chart courtesy of FACTSET and CNBC. What you see below is the SP500 and a scatter plot of companies in terms of their performance since the Feb 2020 all time high. 

What is evident is that the majority of companies are still down from their highs with a significant number still 20%+ off their all time high. 

 

This amplifies the importance of portfolio management and the search for returns going forward. There is only so much juice in that 4/5 company squeeze we are seeing right now which has elevated the SP500 to heights only seen prior to the pandemic. Still, there is plenty of return to be made if you are selective and particular. Questions you could be asking yourself.....

 

1- are there companies in the banking industry that stand out above the rest? 

2- are there any energy companies out there that are bucking the fossil fuel trend and excelling in renewables? 

3- what industrial players stand to benefit from infrastructure spending? 

 

Let's have a look together.