By Lou Carlozo
While investors traded high-fives over the Dow Jones Industrial Average hitting 27,000, there was a high 500 to celebrate as well. Even if it didn’t garner nearly as much notice, the S&P 500 index slipped past the 3,000 mark for the first time; the Nasdaq composite likewise shattered its previous record the day before, closing at 8,203.
Will the S&P 500 morph into the Surge & Profit $5,000? Or is there, hiding beneath all that champagne-glass bubbly, a price bubble of a much bigger sort?
Perhaps not, if you look at some of its major-player components.
"Since the S&P 500 index is weighted by market values, its largest holdings include Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN)," says Matthew C. Lui, vice president, investment research at Canterbury Consulting. "As these larger companies have enjoyed relative success in the last decade, strategies based on the S&P 500 have yielded positive results."