FNArena’s Weekly Insights – May 08 2023
By Rudi Filapek-Vandyck, Editor
All is not what it appears to be, in particular not in financial markets today.
At face value, it seems US equities are well and truly on their way to wiping out last year’s negative performance with the S&P500 gaining 7.7% and the Nasdaq recovering by nearly 17% since January 1st.
Both strong numbers suggest US equities are back on track to seemingly doing what they do best: outperforming most of the rest of the world, including the Australian share market, while climbing the proverbial Wall of Worry.
But look under the hood and virtually all those gains stem from a small group of index heavyweights only. Unless investors own an index tracking ETF, missing out on one or two of the world’s largest companies means the year-to-date experience probably looks a whole lot less positive.
