Historically, the S&P 500 and the S&P 500 Equal Weight have shown strong correlation, basically moving in the same direction at the same time. Recently, however, the correlation between these two has reached the lowest point ever. Indicating smaller stocks beginning to perform differently than larger stocks within the S&P 500.
This is why we maintain diversification within your portfolios ensuring resilience against unpredictable market movements. We remain vigilant in monitoring these risks to help you reach your financial goals.
Same Stocks, Different Stories
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: November 4, 2024
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
