What is really driving the market? 5/14/2017

This week, I promised to show which type of investments performed the best since March 2000. But, instead, I will answer a more timely question: With the S&P 500 making new highs, what is really driving this market?

Let’s look at a Wall Street term “market capitalization” to determine the equity value (size) of a company. Market cap, for short, is determined by multiplying the total number of shares by the price. This number tells us if the stock is a large, mid or small cap stock.

 “Market index” is used to calculate the performance of a group of stocks. The three major U.S. indexes are the Standard & Poor’s 500, Dow Industrials and the NASDAQ 100.
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