|
|
|
|
|
|
by tway_GdBRwW
655 days ago
|
|
|
You are correct that even if the US stock market flatlines for the next 20 years, there will be individual companies which do extremely well, and others which die. That's not what this article is about. The article is about average corporate profits in the current-to-the-point-in-time largest US companies. And using the SP500 allows the analysis to be consistent even as the mix of the SP500 changes. And no, changing the mix does not guarantee that the index increases in value over time. Plenty of periods of 10 years or more where the SP500 flatlined. Also, economies in other countries have extended periods where the index of their top companies flatlined. Further, the explosive growth which you hope to find is generally not in the SP500 companies. The explosive growth is what puts a company INTO the SP500. |
|
|