
How to stay invested in US stocks without the tech overweight
A majority of stock market returns can be attributed to a handful of companies, suggests a W. P. Carey finance expert.
In this story published Feb. 19, 2025, on MoneySense:
I often like to cite a study by Hendrik Bessembinder, a professor at Arizona State University's W. P. Carey School of Business. His research suggests that the largest stock market returns come from a very small number of companies, while 96% of stocks historically have delivered returns no better than U.S. Treasury bills, which are considered risk-free assets. For me, it says: Identifying those few big winners in advance is nearly impossible, and the easiest way to ensure you own them is to buy a broad, market-cap weighted index fund with as many stocks as possible. Over time, the best-performing companies will naturally rise to the top, whether that means tech today or another sector in the future. There's no guesswork involved.
Latest news
- Buyers gain upper hand in Valley housing market
Arizona housing inventory is growing, but it's not yet a true buyer's market, says W. P.
- Wisdom from the supply chain OG
A W. P.
- MACC graduate Kailey Shupe finds immense value in program’s data analytics focus
The Master of Accountancy and Data Analytics (MACC) at W. P.