Sound Advice

How is stock market performance distorted by the Magnificent Seven stocks? (The Magnificent Seven are Apple, Microsoft, Alphabet, Amazon, Meta Platforms, Nvidia, and Tesla. The Magnificent Seven distort market performance by making a small group of mega-cap stocks drive a very large share of index returns, so the S&P 500 can look stronger or weaker than the average stock underneath it. In other words, when those names lead, the whole market can appear healthy even if most stocks are lagging; when they stumble, they can drag index performance down even if the broader market is holding up better. Why this happens These companies have become so large that their combined weight is roughly a third of the S&P 500, so changes in their prices have an outsized effect on the index.   In 2024, they contributed about 48% of the Russell 1000’s total return, which shows how concentrated market gains became.   That concentration means index performance is no longer a clean rea...

What are the smartest things a surviving spouse can do about finances The smartest move is to slow down, get organized, and focus first on cash flow, legal paperwork, and beneficiary designations before making any major financial decisions. A surviving spouse should avoid rushed moves on investments, housing, or retirement accounts until the full picture is clear. First priorities Secure cash for the near term: funeral costs, bills, mortgage/rent, insurance, and 3 to 6 months of living expenses if possible. Gather key documents: death certificates, will/trust, account statements, insurance policies, deeds, titles, and tax records. Make sure banks, creditors, and other institutions are notified so accounts and obligations are handled correctly. Income and benefits Recheck all income sources, including Social Security survivor benefits, pensions, life insurance, and any employer or retirement plan benefits. Review account ownership and beneficiary forms, because the correct titling can a...