Mar 2, 2026
It's Not Just the S&P 500 Anymore...
Introduction
"...it is the part of a wise man to…not venture all his eggs in one basket" – Miguel de Cervantes
When people refer to "The Market," especially in this country, they are either referring to the S&P 500 or the Dow Jones Industrial Average.
Charles Dow and Edward Jones created their famous index in 1896 as a way to gauge the general health of the stock market.
The S&P 500 debuted in its current form in 1957 as an expanded version of the Dow and has since become the standard benchmark in investment circles.
This brief history lesson sets the stage for today's commentary on the S&P 500 potentially passing the baton to other investment classes.
Q1: Hasn't it always made sense to just focus on the S&P 500?
From the depths of the financial crisis in 2009, with the benefit of hindsight, it has made sense to eschew traditional diversification principles and focus on the U.S. stock market with your investment strategy. "S&P and Chill," as the kids say. For 17 years, that approach has paid dividends (pardon the pun).
Q2: Is that trend starting to change?
Like bell-bottom jeans or hair bands, all trends eventually give way to new ones.
The first two months of this year have been a continuation of a nascent trend change.
The S&P 500 is essentially flat to start the year, while overseas markets are already up over 10%.
Additionally, we are continuing to see strength in gold, silver, and other commodities.
Q3: What about people who still believe in U.S. dominance?
There will be some who cling to the idea of U.S. dominance in financial markets.
Not us.
In the last two years, we have shifted from a U.S.-centric portfolio to one that includes a variety of different asset classes.
Simply put, when financial markets talk, we listen.
Q4: Why is intellectual flexibility so important right now?
In my opinion, intellectual flexibility is an essential element to avoid the fragility that accompanies a singular investing mindset.
A devotion to the S&P 500 has paid dividends in the last 17 years.
Are you prepared if that changes?
