FEW STOCKS, LARGE IMPACT
The 10 largest stocks in the S&P 500 made up 21% of the total stock market capitalization of the index as of 06/30/2018. Thus, 2% of the stocks in the index (i.e., 10 stocks out of 500) represent 21% of the total value of the index. The S&P 500 is a market-cap weighted index. (source: S&P).
Inflation (using the “consumer price index“) advanced +2.95% on a year-over-year basis ending 07/31/2018, inflation’s largest annual increase since December 2011. The consumer index (CPI) is a measure of inflation compiled by the US Bureau of Labor Studies. (source: Department of Labor).
The cost of worker pay and benefits edged up 2.8%, making the biggest yearly gain in a decade. (MarketWatch, July 31, 2018).