Jeffrey Gundlach’s brand new presentation to DoubleLine Funds’ investors was a real eye-opener, with a series charts that will have many rethinking the way the see the economy and the financial markets.
Of the many unusual charts Gundlach curated, we found this one interesting.
It’s the performance of the S&P 500 (purple line) versus the performance of holding the just the stock of the S&P 500 company with the biggest market cap (multi-coloured line).
Over the past 30 years, holding the biggest company in the S&P 500 resulted in underperforming the index by a huge margin. By that historical logic, a portfolio of S&P 500 stocks excluding the biggest company would have been a winning investment strategy.
“Owning the highest cap stock is not a great idea,” Gundlach said
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