This Isn’t The Global Financial Crisis. And It’s Not The Dotcom Bust.

Paul Allison

3 months ago4:10 mins

This Isn’t The Global Financial Crisis. And It’s Not The Dotcom Bust.

Past bear markets can tell you only so much about the one we’re in now. So, while it’s understandable that investors might nervously stew about the catastrophic losses from the dotcom bust or the global financial crisis, the S&P 500 index isn’t the same as it was back in 1999, or 2007. So for those trying to figure out where and when today’s bear market might end, take a look at how the index has changed…

What’s different about the S&P now?

The S&P 500’s building blocks are fundamentally different. See, the index is capitalization-weighted, meaning the largest companies by value make up the biggest percentage of the index. And it’s the companies and sectors that dominate the index that will drive its profits and price. The chart below shows the S&P’s sector weights today, in 1999 an

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