There’s nothing like a soaring stock market to make a summer break more enjoyable. The S&P 500 index’s near 15 percent return for the first half of the year ranks as the 13th best start since 1950, according to Comerica Wealth Management.
In the EWI calculation, each company of the S&P 500 index is given an equal weight, versus a weight based on the company’s market capitalization . With an equal weight, the performance drops to about 4% for the first half of the year. Of course, had you put all of your eggs in the Nvidia basket, you would have been up by more than 150% this year!
Whether you are a seasoned investor or just starting out, it’s helpful to remember three simple, but crucial steps necessary to keep your head on straight, regardless of the market climate.