S&P 500 w Equal Weighting Went Nowhere since GFC (Patreon)

The Magnificent 7 captured nearly 70% of the S&P 500's economic profit. The other 493 shared 30% of profits. If you imagine Profit was $100.... eg, the 493 had an average profit of 20 cents each, whereas the Mag 7 had $10 each.

Equal-weighted version assigns same weight to each stock, highlighting average company performance. Give this, the ratio between equal-weighted and cap-weighted indices fell below 2009 Global Financial Crisis lows.

Put another way, on average, the 493 companies in the S&P 500 have gone nowhere for 16 years.

Divide it by M2 growth it is a horror show.

AI will make this even more egregious over the next 5 years - where winners will not take most, they will take everything.