SPY has been half my portfolio for years now
Its an amazing performer, everybody knows that
I even get the thesis, keep the top 500 companies in the portfolio.
What i don’t understand is how it maintains that without bleeding capital. Wouldnt it constantly be selling off its poorest performers at lows, and buying new stocks at all time highs?
I suppose it works best if the megacaps just keep getting bigger, but does this mean that it dips when there are major fluctuations on its lower end?
Leave a Reply