Dear Client,
Headlines keep reporting that the S&P 500 is reaching all-time highs. This week’s chart looks beneath the headline, revealing a very different picture. Of the 500 companies in the index, 130, more than 1 in 4, are trading at least 40% below their all-time highs. Of those, 80 have lost over half their value, with a couple down around 90% or more. Many are familiar names from nearly every corner of the economy. The index can keep rising while so many of its members struggle because such a small group of very large companies carries most of its weight.
For investors, this gap matters. A record high for the index does not mean a record high for most stocks, and a portfolio that simply follows the index may carry more risk than headlines suggest. This is why our RiskFirst® process looks below the surface. We evaluate how risk is spread across a portfolio, not just where the index closed, and adjust exposure with discipline rather than reacting to headlines. Markets will always produce eye-catching numbers. Our job is to look beyond them and make decisions based on what matters most to your portfolio.
One in Four Down Forty or More
130 S&P 500 Stocks are in a 40% Drawdown or Worse
Sources: Bloomberg, Redwood. Data as of 10/13/2026.
View full-size chartRegards,
Shrier Associates LLC
Disclosure: This piece is for informational purposes only and contains opinions that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Past performance is not indicative of future results. Any indices shown are not available for investing. If there is discussion of any specific strategy, it is not intended as a guarantee of profit or loss. If objectives are mentioned, there is no guarantee that it will be achieved. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.
Objectives mentioned are not guaranteed to be achieved. Associates LLC is a state registered investment adviser. Such registration does not imply that the adviser as reached a certain level of skill or ability and no inference to the contrary should be made. Please see firm’s Form ADV Part 2A (Brochure) for more information on investment risks and strategies. Redwood and Shrier Associates LLC are not affiliated entities. Consumer Price Index (CPI) measures the overall change in consumer prices based on a representative basket of goods and services over time.
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