Hi ...can anyone explain how SP500 gained in last two year as much as previous 11 years (from beginning 2009 to end of 2019) ? i understand that example TSLA, MSFT, Amzn ..etc , each has around 1-2% of index weighing , and if 5 largest stocks each gain 1% on certain day, index will go up by at least few % on that certain day . But still the index gain in last two years look crazy, I'm trying to figure out why would any inexperienced trader or investor buy a stock then ?
Because he is inexperienced. You can find good deals, if you know how, yet, those makes less than ~3% of the US market atm.
You're joking - right? Start by not looking at nominal values and plot that chart logarithmically instead of linearly.
I know gain from logarithmic stock chart show it differently ... but still lot of gain in last 2 years , considering most stocks under 75B market caps has lost more than half their values since beginning 2021
I can't, because i don't know how. All that i know is that index is made up of a bunch, overvalued equities, while ~30% of those shouldn't be there in the first place and market cap alone, is a misleading measurement to make an index. There could be better ways to make one, but many institutions wouldn't like that. Instead of looking at the index, China, pandemics, interest rates & moon phases, a retailer should focus on learning how to buy great business at the right time. To evaluate companies.
many ADR and OTC stocks have lost more than 50% of their of their value in 2021 alone, if you have hundreds of stocks in your portfolio , you will know that already
"many ADR and OTC stocks" How many of these make up the S&P 500 Index? I think you have a bias based on your view from the statement above which is incorrect. Some of the "Crazy Cathy" type of stocks have been doing poorly but what percentage of the S&P is made up of this type of stock? S&P 500 Index is cap-weighted so 75 Billion dollar companies don't affect the index much. LMT is ~ #100 on the list with a market cap of ~$100 Billion but only has .21 weighting. AAPL & MSFT account for more than 6% each. https://www.slickcharts.com/sp500