Rate Of ReturnThe tech sector has risen so much, where is the bull market heading?
Today, I researched dollar-cost averaging into the $S&P 500(.SPX.US) . Among the current over-the-counter funds tracking the S&P 500, only 2 are open for subscription:
The one I'm interested in is this high-quota Dacheng S&P 500, but this fund doesn't fully track the S&P 500 Index; it tracks the S&P 500 Equal Weight Index. I went and tallied the annual gains of the S&P 500 Index and the S&P 500 Equal Weight Index over the past 10 years:
It can be seen that before 2023, the S&P 500 and the S&P 500 Equal Weight were basically neck and neck, with wins and losses going back and forth. But since 2023, the S&P 500 has started to completely dominate the S&P 500 Equal Weight Index.
The reason is also clear: in the regular S&P 500 Index, the top 10 constituent stocks have a combined weighting exceeding 35%, and the last three years have been a tech bull market, so it's naturally been fierce. The Equal Weight Index, where all 500 constituents have only a 0.2% weighting, reflects the average market gain.
In this round of tech rally, besides the "Magnificent Seven" shining brightly in US stocks, there have been stunning performances from $Intel(INTC.US) (up 238% this year) and Micron (up 161% this year).
Besides US stocks, Japan and South Korea have also performed exceptionally well these past two years. The usually overlooked KOSPI has risen 75% and 85% in the last two years, respectively.
The STAR 50 Index has also hit a new high today at 1716, up from its low of 635 two years ago, a gain of 170%. I performed poorly in this round of rally, failing to keep up with the pace.
The median gain in the A-share market today was 0.31%, with turnover reaching 3.57 trillion yuan, a recent high, showing high enthusiasm. In specific sectors, memory chips rose 8.73%, leading all sectors; the decliners were still those old, lagging sectors: media, insurance, and baijiu.
What's worth watching in Hong Kong stocks today is the announcement of the lottery results for two new listings. This time, luck was both bad and good. The bad part: I applied for the $METIS TECHBIO-P(07666.HK) with a large application, and this time the large applications required a lottery, while smaller ones were guaranteed at least 1 lot. The good part: I needed to enter the lottery for both Jitai Technology and Yingpai Pharmaceutical, and surprisingly, I was allocated 1 lot for each.
Last Friday, both the Nasdaq and the S&P 500 hit new highs, and recently they've been on a continuous path of setting new records. The current US stock market is also quite divergent, with tech stocks rising to astonishing levels while old, lagging stocks are still recovering from deep pits. I can only change my mindset and not fight the trend.
I took a look at the VIX fear index. Even with the recent surge in the US major indices, it's still within the normal range:
Content Creator: Dolphin Index Valuation
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
