Vann Equity Management的动态

As a wealth advisor, I’m often asked about the risks of today’s stock market. One topic that just won’t go away is the “Magnificent 7” stocks. When I came across this chart, it made me pause. It shows just how reliant the S&P 500’s returns have been on just seven stocks out of an index composed of 500 companies. It’s an incredible testament to the strength of these companies. These are household names, worth trillions of dollars, and they’ve delivered jaw-dropping growth in recent years. But as impressive as they are, history reminds us of one simple truth: trees don’t grow to the sky. Here’s why this matters: These firms now make up more than 30% of the S&P 500. If you own an S&P 500 index fund—or even actively managed funds benchmarked to it—you likely own more of these stocks than you realize. That’s great when these companies are soaring, but what happens when they stumble? If these leaders pause or decline, it will put immense pressure on the other 493 stocks in the index to pick up the slack. We’ve seen this movie before. In the early 2000s, when large-cap tech stocks faltered, small-cap stocks—which had underperformed for years—stepped up and outperformed the S&P 500 for the next decade. This isn’t about predicting a bubble or suggesting these companies will fail. It’s about managing risk. Concentration in the stock market is at levels we haven’t seen since the dot-com era. As investors, we need to ask ourselves: are we truly diversified? Diversification isn’t just a buzzword, it’s the key to weathering market uncertainty. If your portfolio feels too reliant on the “Magnificent 7,” now might be the time to revisit your strategy.

Media headlines are often alarming when we reach historic market highs like the ones we've been facing for the past few months. That's why I'm sharing this article with you, written by my colleague James Parkyn. If you're having trouble navigating these headlines, I think this article will give you a little more perspective.

In addition, investors who actively choose stocks should also "consider" adding ETFs of the US stock market to their portfolios, and should not reject ETF tracking broader marker -- the reason is simple, it's the only stock worth holding forever, the better choice is the US stock S&P 500 index. The famous SPY, IVV, and VOO ETFs track this index. Note: You can use the "Querier to Annualized rate of return for S&P 500 Index" to instantly query the S&P 500 return for any year, or the S&P 500 annualized return for any two years. #IVV #SPY #VOO

The Vanishing Act of Stock Investments: Unraveling the Mystery Behind HoSE’s Plummeting Trading Value https://ift.tt/9LWRSzs The stock market just experienced a volatile trading session on November 5th, with meager trading volume on the HoSE. The matching volume barely reached 384 million units, while the corresponding value was slightly above 8,100 billion VND, a 40% decrease from the previous session and the lowest in nearly a year and a half since the beginning of May 2023. In fact, the matching liquidity has been on a downward trend for several months. The average trading value in the third quarter fell by 15% from the previous quarter to 14,500 billion VND per session. This up-and-down liquidity movement follows a period of sideways trading within a narrow range. The index’s struggle to break through the 1,300-point threshold and its subsequent faltering have dampened investor sentiment. Additionally, the market’s “sawtooth” movement, with small recoveries followed by deeper declines, has left many investors with losses as their accounts are gradually eroded. Investor caution is partly due to concerns about unpredictable global events, especially the upcoming US presidential election results and the Fed meeting on November 6-7. These developments could trigger new trends in global financial markets, leading investors to “freeze” their trading activities in anticipation of the latest updates. Moreover, the prolonged polarization of stock groups and the lack of a leading industry have discouraged capital inflows, redirecting them toward investment channels with higher growth potential, such as gold, real estate, and bitcoin. Even safe investment options like savings deposits have seen remarkable increases. According to the State Bank of Vietnam, resident deposits in Vietnamese banks have reached an all-time high of nearly 6,840 trillion VND as of July 2024, an increase of 305,000 billion VND compared to the end of 2023. On the other hand, unattractive valuations have also dampened investor enthusiasm. Currently, the market’s P/E ratio hovers around 14 times, which is neither a bargain nor overly expensive, but rather in the middle of the VN-Index’s range for the past 10-15 years. According to Mr. La Giang Trung, CEO of Passion Investment, while the market valuation is not low, it is also not excessively high. However, when looking at specific stock groups, there is a polarization in terms of valuation. Investing in stocks with very high valuations may not be rational, and investing in undervalued stocks may cause hesitation due to the perceived risk. “I believe the market is in a very challenging phase for stock picking. However, from a conservative investment perspective, I still prioritize undervalued stocks,” said Mr. La Giang Trung. In the context of a lackluster macro environment, Mr. Bui Van Huy, Executive Director of Ho Chi Minh City Branch, DSC Securities, believes that the market lacks support and is entering...

Markets today make me nervous. Change a couple words in this article Warren Buffet wrote in November 1999, and it could read like it was written today: https://lnkd.in/dVVjSYb7 It's really worth reading the article. But, meanwhile, here're a few quotes: "Today, staring fixedly back at the road they just traveled, most investors have rosy expectations... the least experienced investors–those who have invested for less than five years–expect annual returns over the next ten years of 22.6%. Even those who have invested for more than 20 years are expecting 12.9%." "[Some people seem to think] profits will become larger than GDP. When you begin to expect the growth of a component factor to forever outpace that of the aggregate, you get into certain mathematical problems. In my opinion, you have to be wildly optimistic to believe that corporate profits as a percent of GDP can, for any sustained period, hold much above 6%." "...you need to remember that future returns are always affected by current valuations and give some thought to what you’re getting for your money in the stock market right now. Here are two 1998 figures for the FORTUNE 500. The companies in this universe account for about 75% of the value of all publicly owned American businesses..." "Bear in mind... that investors as a whole cannot get anything out of their businesses except what the businesses earn. Sure, you and I can sell each other stocks at higher and higher prices... You personally might outsmart the next fellow by buying low and selling high. But no money would leave the game when that happened: You’d simply take out what he put in. Meanwhile, the experience of the group wouldn’t have been affected a whit, because its fate would still be tied to profits. The absolute most that the owners of a business, in aggregate, can get out of it in the end... is what that business earns over time." "Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like... they’ve performed in the past 17. If I had to pick the most probable return, from appreciation and dividends combined, that investors in aggregate... would earn in a world of constant interest rates, 2% inflation, and those ever hurtful frictional costs, it would be 6%." "I won’t dwell on other glamorous businesses that dramatically changed our lives but concurrently failed to deliver rewards to U.S. investors: the manufacture of radios and televisions, for example. But I will draw a lesson from these businesses: The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage."

The stock market is showing nice gains so far in 2024, with the S&P 500 up over 12% as of this writing. Other major averages, including the Dow Jones and the NASDAQ, have also shown strength so far in 2024.

The stock market is showing nice gains so far in 2024, with the S&P 500 up over 12% as of this writing. Other major averages, including the Dow Jones and the NASDAQ, have also shown strength so far in 2024.

The stock market is showing nice gains so far in 2024, with the S&P 500 up over 12% as of this writing. Other major averages, including the Dow Jones and the NASDAQ, have also shown strength so far in 2024.