Barron's Streetwise Is the S&P 500 Enough?
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Mar 7, 2025 Amy Wu Silverman, Head of Derivative Strategy at RBC Capital Markets and expert in equity derivatives, dives into the complexities of the S&P 500's historical performance. She challenges the notion of U.S. market superiority, urging investors to consider global trends. The conversation includes insights on the relevance of defensive sectors and the ongoing value versus growth debate. Additionally, Amy elucidates the intricacies of hedging strategies in today's volatile market, lending perspectives on managing investment risks effectively.
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S&P 500 Performance
- The S&P 500 has tripled investors' money over the past decade, outperforming many expectations.
- Despite anxieties and calls for rotations into value or international stocks, the U.S. market continues to outperform.
U.S. Market Dominance
- A new report by Marsh, Staunton, and Dimson analyzes 125 years of global investment returns.
- The U.S. stock market's dominance has grown from 49% in 2000 to 64% in 2024, exceeding expectations of a reversal.
Market Shifts
- The UK's share of the global stock market has declined from 24% in 1900 to 3% today.
- Japan's share peaked at 40% in 1989 but has since fallen below 6%, illustrating the potential for market shifts.
