Chart of the Day - Wednesday, December 21st, 2022

Today’s Chart of the Day comes from Ned Davis Research (@NDR_Research). The chart shows the S&P 500 (blue) and the performance of owning the largest stock within the index. Over the decades, the largest stock in the S&P 500 has changed from IBM to GE, to Wal-Mart, to Apple, etc. If you only owned the largest S&P 500 stock, you would be up 1,794% over the past 50 years. That's far less than the 14,913% gain you would have by simply owning the index over the same period. This chart serves as a reminder that leadership changes over time and it's important to stay diversified.