Trickle Up Profits…Mega Caps and Mega Lies

I’m off the road a few months and catching up on my makeshift trading desk (wherever I open my Macbook Air).

Lucky for me I have @ivanhoff watching the markets for me and working our strategy.

Some crazy stats have stood out recently:

The largest S&P companies have become planets.

Passive investing is now 40 percent of invested dollars so the passive bubble continues. This market cap indexing and passive investing phenomenon is feeding the planets.

Over the last 12 months the S&P is up a whopping 16 percent which of course helps the marketing of passive investing.

Dive a little deeper though …

Ivanhoff tallied that 134 stocks have doubled in the last 12 months, while only 16 lost 50 percent of their value. The casino has been paying out…

As much as Facebook, Google and Netflix seemed to be owned by every fund and every ETF, you have to go far down the list of best industries (over the last 12 months) to find Social Media and Internet.

As much as Mega Cap is in….the active investor has had a lot to be excited about the last 12 months.


Originally published at Howard Lindzon.

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