CONSUELO MACK: This week on WEALTHTRACK, great investor Charlie Dreifus is calmly sailing through market storms with portfolios loaded with undervalued companies with long histories of strong cash flows and dividend increases. Royce special equity multi-cap fund’s Charlie Dreifus is next on Consuelo Mack WEALTHTRACK.
Hello and welcome to this edition of WEALTHTRACK, I’m Consuelo Mack.
Until the recent market correction, one of the key characteristics of the U.S. stock market has been how narrow the market leadership was. A handful of stocks were responsible for the bulk of the S&P 500’s gains. According to Strategas Research the S&P’s top ten point contributors accounted for 95% of the market’s advance before the August pullback.
But five of them, Amazon, Apple, Walt Disney, Facebook and the combined Class A and Class C shares of Google made up 69% of the markets pre-correction gains.
Needless to say, unless you owned those five names, chances are you underperformed the S&P 500. On the flip side, during the late summer’s dramatic market decline, owning them hurt. They became prime sale candidates.