Humorous indicators trivia.
Nikkei Stock Average (Nikkei 225).
• The ghost of the bubble finally finds peace!?
In 1989, the bubble peak recorded 38,957 yen, but it has been sluggish for over 30 years. It was often referred to as the 'curse of the Japanese economy,' but finally updated in 2024!
...but if it gets too excited with 'We've surpassed the bubble!', it might be in trouble again.
• Although it is the 'average stock price', it is not average at all.
While the Nikkei average is a simple average of 225 stocks, Uniqlo (Fast Retailing) is at a super high price, which often causes it to move the Index ETF by itself.
I think there is a theory that "the Nikkei average equals the Uniqlo Index."
S&P 500
• It's a "report card" from the USA, but it doesn't include failing grades.
The S&P 500 is a list of 500 top-performing companies. However, those with poor performance can be quickly replaced. In other words, "Underperformers are out!"
Unlike Japan's TOPIX, it operates in a way that only consistently great companies remain.
• The dominance of GAFAM
Apple, Microsoft, Amazon, Google (Alphabet), and Meta (Facebook).
Even if one thinks "I am investing in the S&P 500", in reality, these five companies make up about 25% of the total...approximately 25%...