By David Vomund

How much are stocks up this year?  That common question is getting harder to answer.  Many individuals look to the Dow Jones Industrial Average, which was established in 1896, when it comes to measuring the market.  Although it has a great history, it’s time to retire the Dow.  

The Dow is a price-based average so high-priced components like UnitedHealth ($497) play a far bigger role than Cisco ($46) and Walmart ($67).  That’s ridiculous.  Plus, there are only 30 stocks in the Dow.  

For those reasons the S&P 500 Index became the standard market measurement.  But it has flaws, too, and is increasingly sensitive to moves in a few stocks.  The S&P 500 is a capitalization-weighted index so the larger the company the bigger the influence it has on price.  

In recent years the largest companies have grown faster than others so the S&P 500 Index is greatly influenced by a few holdings.  The largest five stocks (Apple, Microsoft, Nvidia, Amazon, and Meta Platforms) control 27 percent of the index’s movement.  Technology stocks are nearly a third of the weighting.  Instead of showing what 500 stocks are doing, the S&P 500 is becoming a technology index.  

To show how five technology stocks are making the overall market look stronger than it actually is let’s look at this year’s return.  As of a week ago, the S&P 500 was at an all-time high with an impressive 14 percent year-to-date gain.  But the average stock in the S&P had a gain of just 4.2 percent.  The Dow Jones Industrial Average was up 2.4 percent, S&P Mid-Cap Index was up 4.3 percent and S&P Small-Cap Index was down 3.3 percent.  Clearly the S&P 500 is overstating the strength of most stocks.  

Congratulations to those invested in the S&P 500 because they’ve done better than the market (for most of my career that statement would make no sense!).  But those investors may be taking on more risk than they realize.  

Years ago investors who wanted a diversified equity portfolio could simply buy an ETF that tracked the S&P 500 Index.  They can’t do that now, however.  If a client asked me as an adviser to put them in a diversified equity portfolio and I bought five technology stocks with more than a quarter of the portfolio then I could surely be sued!  Should Nvidia and others continue to outperform like many expect then their influence will only get larger.  S&P 500 Index fund investors should understand that risk.

David Vomund is an Incline Village-based Independent Investment Advisor.  Information is found at www.VomundInvestments.com or by calling 775-832-8555.  Clients hold the positions mentioned in this article.  Past performance does not guarantee future results.  Consult your financial advisor before purchasing any security.

Originally published in the Tahoe Daily Tribune, 06/12/2024, Written by Zoe Meyer

INCLINE VILLAGE, Nev. — Sarah Krammen from Truckee and Raj Karwa from Incline, both seasoned pilots, are gearing up to participate in the Air Race Classic (ARC) from June 18-21. The duo, flying under the team name Tahoe Turbulence, will navigate a 2,600-mile route covering nine states, starting from Carbondale, Illinois, and ending in Colorado. The ARC, a storied event in women’s aviation, brings together over 100 female pilots to test their skills and strategy in a competitive yet collaborative environment.

The Air Race Classic has a rich history dating back to the 1920s, with pioneering female aviators like Amelia Earhart and Louise Thaden setting the stage for future generations. The race also emphasizes mentorship, with experienced racers, known as “Mother Birds,” guiding first-time participants like Krammen and Karwa. “They have been giving us so much detail and help along the way, from survival tips to making our airplane perform better,” Karwa said.

READ MORE>

Photo credit – Tahoe Daily Tribune

Originally published in the Sierra Sun, 06/10/2024, Staff Report

INCLINE VILLAGE, Nev. – The Hyatt Regency Lake Tahoe begins its lakeside yoga with a DJ series on June 13. There will be six sessions that run through September and benefit Tahoe Family Solutions. 

“We are thrilled to bring back our popular lakeside yoga series in partnership with Alex Farrar,” said the Hyatt’s director of spa and wellness Julie Orblych. “We look forward to welcoming our local community and resort guests to join us on the beach for an all-levels yoga session back-dropped by our beautiful lakeside setting, all while giving back to a great cause.” 

Yogi Alex Yrigoyen will lead a one-hour yoga session complemented  by uplifting music from DJ JOOLZ 

READ MORE >

Photo provided by Hyatt Regency Lake Tahoe

Originally Published in the TRPA Newsletter 06/07/2024

In the Works:
The Tahoe Transportation District and partners are working to expand the popular East Shore Trail from Sand Harbor to Spooner Summit, while tackling road safety and improving water quality through erosion-control enhancements. The next section will connect Thunderbird Cove to the Secret Harbor parking lot. Other sections of the trail will be built as funding becomes available.

Check out the Interactive Tahoe Bike Map HERE >

Photo credit TRPA

Submitted by Melissa Mangiaracina

The primary election is tomorrow, June 11, 2024, from 7:00 AM to 7:00 PM.

Vote in person or drop off your mail in ballot at the Incline Village Library or the Prim Library on the UNR-Tahoe Campus.

This is an incredibly important election for our town, as the Justice of the Peace will almost certainly be decided tomorrow. As the only attorney and judicial officer running, I encourage everybody to do their research and vote on this important position.

For those that may still have questions about me and my background, I am holding one more Virtual Meet & Greet TODAY from 12:00 to 1:00 PM.

To join the meeting, please visit my website at www.melissaforjp.com and click on the link provided. I look forward to talking to you about my education, experience and vision for the Incline Village – Crystal Bay Township Justice Court.

Submitted by Mary Mann-Gilbert, 06/07/2024

P.E.O. (Philanthropic Educational Organization) Local Chapter AC in Incline Village awarded scholarships to six graduating Incline High School seniors during Scholarship Night on Wednesday, June 12th.

P.E.O. is a Philanthropic Education Organization of women who are dedicated to supporting women’s education. The funding of these scholarships is a result of P.E.O. Chapter AC’s Tastes of Incline fundraiser.

A total of 300 tickets are available for the event each year and it usually sells out, so organizers recommend purchasing pre-sale tickets. Tickets are available for sale at The Potlach ($80 presale and $90 at the door).

Each of the participating restaurants donates their time and food for every attendee to sink their taste buds into. This year will feature many of your favorites. Food and drink will be accompanied by a silent auction and a restaurant raffle.

The 23rd annual Tastes of Incline event will take place at the beautiful Chateau, 955 Fairway Blvd., in Incline Village on Thursday, August 29th. Event time is from 4:30-7 p.m.

It’s such a fun party! Friends from all parts of the community come each year and visitors are welcome, too. We want everyone to support education for all young people.