Palantir Stock Is the Market's Most Expensive, and It Just Might Make Sense - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Why Palantir's Ridiculous Valuation Is Starting to Make SenseBy [Martin Baccardax]ShareResize---ReprintsIn this arti ...

Group 1 - Warren Buffett recommends that average investors consider buying an S&P 500 index fund as a way to invest without the complexity of selecting individual stocks [1] - The S&P 500 index is designed to track the U.S. economy rather than just the fluctuations of Wall Street, reflecting the historical growth and innovation of the United States [2] - The index is constructed by a committee that selects large, economically significant companies across various sectors, with stocks weighted by market capitalization [4] Group 2 - The Vanguard S&P 500 ETF is highlighted as a cost-effective option for tracking the S&P 500, with an expense ratio of just 0.03% [5] - A significant concern with the Vanguard S&P 500 ETF is its market-cap weighting, which can result in a few sectors and stocks disproportionately influencing the index's performance [6] - Currently, technology stocks represent 34% of the index, with Nvidia, Apple, and Microsoft alone accounting for nearly 21%, raising concerns for conservative investors about potential downturns in the tech sector [7]

Joining us now is Bill Smei. He's the chief investment officer at Sme Capital Management. Bill, it's great to see you again.Welcome. >> Hey, great to be with you. >> Jump in here.You can pick the housing piece first if there's anything in that last discussion that you know you wanted to chime in on. >> Well, I I I don't want to pick on your prior guest too much, but somebody once said if you put all the economists end to end, you'd never get anywhere. >> Understood.But where so do you come down as as in thi ...

Core Insights - The primary distinction between the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) lies in their scale and investor preferences, as both have similar costs and performance metrics [1][4]. Cost and Size Comparison - Both IVV and VOO have an expense ratio of 0.03% and deliver a similar dividend yield of approximately 1% [3][4]. - As of the latest data, IVV has assets under management (AUM) of $680.6 billion, while VOO has a significantly larger AUM of $1.5 trillion [3]. Performance and Risk Metrics - The one-year total return for IVV is 16.5%, compared to VOO's 18% [3]. - Over a five-year period, the maximum drawdown for IVV is -24.53%, while VOO's is slightly lower at -24.52% [5]. - The growth of $1,000 invested over five years is $1,845 for IVV and $1,842 for VOO [5]. Portfolio Composition - VOO holds 505 stocks with a sector mix led by technology (34.6%), followed by financials and consumer discretionary [6]. - IVV has 503 holdings with a similar sector allocation, with technology at 34.02% [7]. Investment Implications - Investing in S&P 500 ETFs like IVV and VOO provides a cost-effective way to gain exposure to the performance of the 500 largest publicly traded companies in the U.S. [9]. - The recent surge in the S&P 500 index to record highs has also led to record highs for both IVV and VOO [10]. - Investors can benefit from dividends paid by S&P 500 companies, which are collected and passed on by the ETFs [11]. Investor Considerations - Retail investors can choose between VOO and IVV, with VOO's larger size and higher trading volumes potentially offering better liquidity for high-volume traders [12].

Investors were bracing for the Federal Reserve's final interest-rate decision of 2025 on Wednesday, with history showing that the S&P 500 index has tended to see a modest gain on Fed days in December. ...

Core Insights - Ares is identified as one of the largest companies by market capitalization that is not currently included in the S&P 500 index [1] Company Overview - Ares has a significant market capitalization, positioning it among the largest companies in the market [1] - The exclusion from the S&P 500 index highlights a potential opportunity for investors to consider the company's growth and performance [1] Industry Context - The S&P 500 index is a key benchmark for large-cap U.S. equities, and companies not included may present unique investment opportunities [1] - Ares' status outside the index may indicate a divergence in market perception compared to its peers [1]

RBC Capital Markets strategists predicted the S&P 500 index would rise by more than 10% for a fourth straight year, the latest to issue a bullish forecast on Wall Street https://t.co/IPk9TP45Da ...

Core Insights - 1578 Partners outperformed the S&P 500 index in Q3, achieving a return of 14.37% compared to the index's 13.93% [1] Company Performance - 1578 Partners serves as the model account for taxable accounts managed by Hinde Group [1]

Core Insights - Etsy's valuation may have reached a low point, potentially setting the stage for future outperformance if a new partnership drives growth [1][10] - The company was removed from the S&P 500 due to its stock no longer representing large U.S. companies, reflecting a shift to a small-cap status [2] - Despite a significant stock decline of approximately 80% since its peak in late 2021, Etsy's business has remained resilient, generating substantial free cash flow [3][4] Valuation and Buybacks - Etsy's shares are currently trading at a price-to-free-cash-flow valuation of less than 14, one of the lowest since its IPO [4] - Over the past three years, Etsy has reduced its outstanding shares by 21% through substantial stock buybacks [5] Historical Performance and Future Potential - Historical data suggests that stocks removed from the S&P 500 tend to underperform initially but may outperform the market over a five-year horizon [8][9] - The decline in stock price often leads to a lower starting point for future returns, indicating that Etsy's current low valuation may present an opportunity [10] Adoption Trends and Growth Catalysts - Etsy's active buyers decreased by nearly 5% in Q2 2025, highlighting a challenge in user adoption [11] - The integration of ChatGPT with Etsy's platform could provide a new shopping experience, potentially boosting user engagement and growth [13] Comparative Analysis - eBay serves as a relevant example, having faced similar growth challenges but managed to reduce its share count significantly, leading to a 141% stock increase over three years despite low revenue growth [14][16] - If Etsy can leverage the ChatGPT integration to improve its growth rate, it may follow a similar trajectory to eBay and outperform the market [16]

Core Viewpoint - The initial tech-driven rally in the market is beginning to expand, which is expected to support further increases in major indexes like the S&P 500 [1] Group 1 - The broadening of the rally is seen as a positive sign for market indexes, indicating a potential for sustained growth [1]