Ask Doc For much of this year, the S&P 500 Index hit new high after new high.
Despite the small correction earlier this month, the index is once again nearing historic highs. Year to date, it's up 17%. That's a fantastic return for just about any year... and we're only eight months in.
But while you've likely seen headlines about the overall S&P 500's performance, we've shown you before that just a handful of stocks are carrying the market... stocks like Nvidia (NVDA) and Microsoft (MSFT).
While the S&P 500 is up 17% this year, the S&P 500 Equal Weight Index – which weights all 500 stocks equally, rather than skewing toward those with the biggest market cap – is only up 10%.
Shown another way, the chart below looks at the percentage of S&P 500 stocks beating the index. We're currently on pace for a record low...
If you're picking individual stocks and have stayed away from the largest companies in the world, you probably haven't had that great of a year.
Longtime readers know that I prefer industry-leading blue-chip stocks to make up the bulk of my portfolio. They're a good way to earn steady income through dividends and help you sleep well at night. But so far this year, they haven't been a way to earn sizable gains.
This status quo won't last... All eyes remain on the largest tech companies for now, but the rest of the market – including the companies we like to own – will start to catch up. That's our path to incredible long-term gains.
But thanks to another market force that we've written about in recent weeks, an opportunity is also emerging for short-term gains. I'm talking about volatility.
The closer we get to the presidential election in November, the more likely we are to see another big spike in volatility. And if you position your money right, it's another way to make big money this year.
I'm not the only one with my eyes on volatility. On Tuesday, my colleague and Ten Stock Trader editor Greg Diamond hosted a webinar explaining the upcoming opportunity in the market. He said, "Regardless of who wins, elections create enormous volatility. And within that volatility, predictable cycles emerge that we can take advantage of in the stock market."
Using Greg's strategy for rising volatility could help you double your money on the same 10 stocks over and over again... without buying a single share.
If you missed his webinar, click here to watch a replay now.
Moving on, let's dig into the Q&A... As always, keep sending your comments, questions, and topic suggestions to [email protected]. My team and I really do read every e-mail.
Q: I have always believed that there are no bad foods, just inappropriate quantities. Every year around Labor Day I visit my son and the grandkids and attend the Minnesota State Fair. It is a junk food festival for us. What are your thoughts about this, and what is your favorite fair food? – M.D.
A: As I've written before, it's OK to eat unhealthy food as long as it's in moderation. It only becomes a problem when those unhealthy foods become part of a regular habit.
I'm old enough to remember when the classic fair foods were corn dogs and fried cheese curds. I haven't been to a fair in a while, but my assistant told me fair foods have evolved into a type of junk-food gamesmanship as vendors chase weirder and weirder confections. (Who could say no to a hot-beef sundae, fried butter, or a lobster corn dog?)
Whether you're looking for old staples or these newer foods, just have fun at the fair... Don't stress over your usual dietary rules. Then go home and get right back into your healthy habits – avoiding too much sugar and overly processed foods – until next year's fair.
Do take care of your body in other ways this weekend, though... Wear sunscreen and a hat at the fair, and make sure to drink plenty of water.
Q: I can't find the article Dr. Eifrig wrote on vitamins D and K. Could you direct me to the article please? Thanks. – L.L.
A: We've written about both several times over the past few years... We'd recommend starting with our issue on the dangers of fat-soluble vitamins (including vitamins D and K): The Dangers of Fat-Soluble Vitamins.
More recently, we've answered reader questions on vitamin D here and vitamin K here.
What We're Reading...
- Did you miss it? Millennials have a big advantage over other investors.
- Something different: Some of the weirdest state-fair foods in the U.S.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
August 30, 2024
Editor's note: Our offices will be closed on Monday, September 2, in observance of Labor Day. Look forward to your next issue of the Health & Wealth Bulletin on Tuesday, September 3.