This year, five S&P 500 equities, including tech behemoth Nvidia, social network leader Meta Platforms, and EV leader Tesla, quadrupled investors’ capital.
This is unlikely but plausible, given that only one S&P 500 stock gained 100% in the past year.
Seasonality and advance extremes made many indices susceptible to changes in monetary and fundamental expectations, which prompted profit-taking.
Despite the 16.6% increase in the S&P 500, investors are experiencing gains of twofold.
This year, the S&P 500 has been led by Nvidia, the only stock to advance by more than 200%.
This year, analysts anticipate a 134% increase in the company’s profits.
After last year’s investment in virtual reality devices and social media prospects, Meta Platforms grew by a factor of two this year.
This year’s 120% increase falls shy of Tesla’s five-year average but surpasses last year’s 65% drop.
These streaks could terminate this year or the following, but S&P 500 investors will continue to experience double-digit returns for the time being.