In this month’s newsletter, we discuss S&P 500 concentration and a planning tool available to clients.
We hope this newsletter finds you and your family staying safe and enjoying fall.
This month, we’d like to highlight a technology platform that is available to all of our clients. Your Personal Financial Website provides a central location where you can view up-to-date information on all of your accounts, as well as your net worth, goals and spending. It also provides a secure vault that can be used to store personal documents.
If you would like more information on this platform, please click on the link below to watch a short, informative video on the features that it offers.
Please contact your planning team so that they can help you get started by sending an email to planning@barryia.com or by calling the office at
The S&P 500 represents 500 of the largest companies in the United States. While you’d think this representation may be equally weighted across the individual stocks within the index, at times, the index can become “concentrated,” with just a handful of stocks driving the performance of the index. This happened back in 2000 when just five stocks accounted for 18% of the S&P 500. Following the COVID-correction in March and April, the S&P 500 has reached a historic level of concentration with the five largest stocks now accounting for 23% of the index.
What does this mean for investors? We believe in the theory of mean reversion, or the idea that key metrics tend to return to their long-term norms. For us to see a “return to normal” regarding S&P 500 concentration, the top five weighted stocks would need to depreciate in price, the remaining 495 stocks would need to appreciate in price, or we would need to see a combination of those two movements. To us, this signals that out-of-favor stocks in the S&P 500 may hold more value at the present moment relative to their heavily-weighted peers.
Employee Favorites
Our Favorite iOS Walkthrough
In this video from the Wall Street Journal, Joanna Stern walks through 14 tips and tricks for Apple’s new operating system, iOS 14. If you use an iPhone, you will probably learn some valuable tools that can streamline your daily life. It did for our team, and hopefully it does for you as well.
“Just because all your friends are investing in it, doesn’t mean you should.”
- Your Father!
The Lighter Side of Investing
Barry Team Happenings
This month was full of celebrations and supporting the community!
The SouthCoast Community Foundation held their Summer's Last Blast 25th Anniversary Celebration on September 11th. Although this year was definitely a different format than the past, the Foundation didn't miss a beat! The Foundation brought the celebration to everyone's homes, delivering food and beverages as well as live televised performances by various entertainers - all of which was enjoyed in the comfort of your own home! The creativity in pulling this together was unbelievable and the event was unforgettable! Thank you to the SouthCoast Community Foundation and to Kate and Pat for hosting at their homes!
Whitney participated in her 13th Multiple Sclerosis (Virtual) Challenge Walk, walking 50 miles over three days throughout the state of Rhode Island in support of those living with MS.
Pat celebrated his birthday on September 23rd. Happy Birthday, Pat!!
Barry Investment Advisors (“BIA”) is an SEC registered investment adviser with its principal place of business in the Commonwealth of Massachusetts. BIA and its representatives are in compliance with the current registration and notice filing requirements imposed upon registered investment advisers by those states in which BIA maintains clients. BIA may only transact business in those states is which it is registered/notice filed or qualifies for an exemption or exclusion from registration/notice filing requirements. Any subsequent, direct communication by BIA with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of BIA, please contact BIA or refer to the Investment Advisor Public Disclosure web site (www.adviserinfo.sec.gov).
Investments involve risk and are not guaranteed. This web site and any information contained on the web site are not intended to provide investment, tax, or legal advice.
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