Even though just five stocks, led by Apple and Microsoft, account for 24% of the index, the concentration helps stabilize the risk of investing over time.
Traders don’t believe that Congress is foolish enough to allow a default, and even if one were to occur, they are signaling it would be short-lived and less damaging than feared.
Reaching for yield during inversions misses the bigger driver of total return, namely the path of interest rates, which is difficult to predict with precision.