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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 659.00+1.0%Nov 21 4:00 PM EST

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To: StockOperator who wrote (12159)4/28/1999 1:58:00 AM
From: Berney  Read Replies (1) of 99985
 
SO, let's put all this in historical perspective.

It is my philosophy that the Big Boyz rule and will continue to rule until proven otherwise. At the end February, there were 54 U.S. companies with a Market cap of more than $50B. These 54 companies comprised 46% of all the U.S. equity traded on the exchanges.

The annualized 3 year return of these 54 companies was 45% vs. 27% for the Index. One can only imagine what happens to the investment performance of the others, when you bring these 54 companies into a market cap system and the average declines from 45% to 27%.

As for the universe of U.S. companies, a CD would have been a better investment. The annualized, 3-year investment performance of the some 6,500 U.S. companies was a dismal 3.6% (that's not a typo folks).

I'll conclude here and let you and others ponder the significance!

TB
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