FDP Wealth Management

This Year's Surprising Market Rally

The S&P 500 Index is up 18.15% since the end of last year. It has advanced 26.82% since bottoming on October 12, 2022 (through 7/21/23; data St. Louis Fed, MarketWatch). Both metrics exclude dividends reinvested.

The S&P 500 Index covers about 80% of available market capitalization, per S&P DJ Indices.

The index includes firms from all the major economic sectors, but it is a market-cap-weighted system, leading to the larger firms having a more significant impact on the index.

According to S&P Dow Jones Indices, the top ten stocks in the index account for 30% of the S&P 500. Earlier in the year, the top seven stocks in the S&P 500 by market capitalization, including Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), and Meta Platforms (META, Facebook), accounted for a big share of the advance.

Read the full analysis on our website: https://fdpwm.com/site/this-years-surprising-market-rally/

BANK FAILURES - THEN AND NOW
Recent bank failures, although large, are isolated.

In 2008 - 25 banks failed, totaling $374B in assets.
> Washington Mutual was the largest bank failure in history, with $307B in assets

In 2023 - 2 banks have failed, totaling $319B in assets.
> Silicon Valley Bank ranks as #2 in history, with $209B in assets
> Signature Bank had $110B

WHAT'S DIFFERENT?
This time banks don't have a massive inventory of sub-prime mortgages and mortgage-backed securities - the "contagion" that spread throughout the banking system in 2008.

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