Not all indices are created equal. Often times when you hear people talk about how the market is doing they are referencing the Dow Jones. Is the Dow Jones really a good indicator? It’s made up of a small sample pool of the thirty leading stocks in each of their respective industries and it is price weighted. As investment advisors we tend to follow the S&P 500. It’s constructed based on market cap and it is made up of the largest 500 companies. As you can see the S&P 500 has faired better than the Dow Jones this quarter. The standout in the chart above is the Nasdaq. The Nasdaq is better known for its heavy technology exposure and relatively limited exposure to some of the more depressed sectors (energy, financials). Technology remained in demand as people leveraged it to remain efficient and connected. As the economy opens back up, we would expect the S&P 500 companies to do much better and perform more in line with the Nasdaq. Brighter days will come, but for now please know that you have us in your corner ready to provide advice.