With S&P 500 near record highs, it’s time to reconsider the set-it-and-forget-it strategy, some experts say
“The S&P 500 is broken,” said Michael DeMassa, who is a certified financial planner and chartered financial analyst, and the founder of Forza Wealth Management in Sarasota, Florida.
Many investors assume investing in the S&P 500 index — through ETF ticker symbols SPY, VOO or IVV — is synonymous with diversification, DeMassa said.
Yet that sense of safety is an illusion, he said, since the market capitalization-weighted index means companies with bigger allocations may drag down the fund if their performance suffers. Or the index’s heavy concentration in the technology sector may prompt volatility to ripple through the entire index, DeMassa said.
