Latest posts
- S&P 500 Without Magnificent 7: A Rebalanced Index ExperimentIntroduction What happens to the S&P 500 without Magnificent 7 stocks if those companies are removed and the remaining constituents are rebalanced back to 100%? Since the start of 2023, the S&P 500 has delivered a very strong price return. But a large part of that performance has been driven by a small group of… Read more: S&P 500 Without Magnificent 7: A Rebalanced Index Experiment
- S&P 500 Return Contribution Analysis: Which Stocks Are Really Driving the Index?S&P 500 return contribution analysis helps answer a simple question: which stocks are actually driving the index? The S&P 500 is usually discussed as one number. The index is up, the index is down, the market rallied, or the market sold off. But in a market where mega-cap companies account for a growing share of… Read more: S&P 500 Return Contribution Analysis: Which Stocks Are Really Driving the Index?
- When Growth Destroys Value: Capital Intensity, ROIC, and the Cost of CapitalGrowth is not automatically value creating. This post explains how capital intensity and the ROIC minus WACC spread determine whether expansion creates value or destroys it, with links to economic profit and EVA references.