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How FINQ portfolios beat S&P 500 vs S&P 493: The Economist response

  • December 18, 2023
  • 5 min read
  • Understand the difference between FINQ's AI-driven investment strategy to traditional indices like S&P 500 and the hypothetical S&P 493.
  • Learn about the advantages and limitations of each investment approach, emphasizing FINQ's adaptability and data-driven insights.
  • Discover the benefits of data analytics and technology in modern investing.
  • Explore FINQ's portfolios along with their insight-driven investment approach and how they are outperforming traditional indices.

In the dynamic world of investing, the recent analysis by The Economist comparing the tech-heavy S&P 500 with a hypothetical, more traditional S&P 493 raises an intriguing question: Does the standard stock market index truly capture the full breadth of the American economy? 

This discussion is more than academic; it's a critical consideration for investors seeking to understand the real pulse of the market. That’s where FINQ comes into play as an innovative resource providing a fresh perspective.

FINQ investment offers data-driven insights that go beyond the traditional boundaries of market indices. By utilizing advanced analytics and AI, FINQ provides a deeper, more nuanced understanding of market trends than the indices discussed by The Economist. Our article aims to directly respond to The Economist and explain why.

Understanding the S&P 500 vs S&P 493 debate

The debate between the S&P 500 and the hypothetical S&P 493 is a fascinating one, shedding light on the nuances of market representation and investment strategies. It’s a discussion centering around the impact of the 'Magnificent Seven' tech giants on the S&P 500 and how excluding them to form the S&P 493 could offer a different market perspective.

The concept of the S&P 500 and rationale behind the S&P 493

The S&P 500 is a renowned stock market index comprising 500 of the largest U.S. companies. However, roughly 29% of its market value is through seven tech firms: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. In other words, these companies, all established within the last 50 years, with most surpassing the $1 trillion market cap mark, heavily and disproportionately influence the index. 

In contrast, the proposed S&P 493 excludes these tech giants, aiming to provide a more traditional market view. It represents the other 98.6% of companies, focusing on long-established firms like Berkshire Hathaway and Eli Lilly, known for their stability and less rapid innovation.

Advantages and disadvantages of each approach

Each approach has advantages and disadvantages. Let’s take a quick look at them:Table _  FINQ vs. S&P 500 and S&P 493FINQ's innovative approach to investing 

Guided by CEO Eldad Tamir, FINQ is transforming investing by fusing big data and AI and stepping beyond the confines of traditional market indices. This innovative approach simplifies the complex world of financial data, providing investors with clear, actionable insights. It's a testament to how intelligently analyzing vast amounts of data can give investors a powerful edge in making timely and informed decisions.

FINQ’s portfolios and how they differ from traditional index-based approaches

FINQ redefines stock market investing with its STOCKS-AI-powered portfolios, providing clarity in the often chaotic market environment. The best part? They markedly stand out compared to the traditional indices with consistent outperformance. The portfolios are:

  • FINQFIRST: Moving away from conventional stock-picking strategies, FINQFIRST curates a dynamic list of the top 10 stocks to buy, updated daily. This approach, grounded in sophisticated data analysis and AI, consistently outperforms traditional indices like the S&P 500, offering a fresh perspective on high-potential investments. As of November 30, 2023, FINQFIRST has outperformed the S&P 500 with a year-to-date return of 36.17%, compared to the S&P's 9.31%. 
  • FINQLAST: FINQLAST challenges the norms of short-selling by providing a meticulously curated list of the bottom ten stocks. This strategy, driven by data intelligence, systematically surpasses traditional methods and the S&P 500 Short Index, offering a more calculated approach to betting against the market. As of November 30, 2023, FINQLAST has outperformed the S&P 500 Short Index, achieving a year-to-date return of 20.22% against the S&P's -9.31%. 
  • FINQEDGE: Diverging from single-strategy investment methods, FINQEDGE combines the dual tactics of acquiring stocks with high growth potential and short-selling underperformers. This innovative approach yields significant gains over standard benchmarks like the S&P 500, showcasing the strength of a multifaceted investment strategy. As of November 30, 2023, the comprehensive FINQEDGE portfolio has also outperformed the S&P year-to-date with a notable 35.24% to 9.31% margin.

FINQ's data-driven analysis: Benefits and a more comprehensive market view 

FINQ's core technology harnesses a robust trifecta: comprehensive data collection, intelligent analysis, and AI evolution. It structures data into three key categories: public sentiment, professional market insights, and detailed company fundamentals. By digitizing and analyzing this data, FINQ strips away noise, focusing on information with theoretical and scientific validity. Its AI system assigns continuous rankings to financial products, offering clear comparative insights.

FINQ's core technology harnesses a robust trifecta: comprehensive data collection, intelligent analysis, and AI evolution.

Tamir emphasizes the importance of emotion-free, data-driven decision-making, particularly for younger investors. He advocates using FINQ over traditional indices like the S&P, noting that its technology can help over the long term. His approach is simple yet effective: invest early, make informed choices, and stay in the market without being swayed by intermediaries or market fluctuations. “It’s so important for younger people to stay in the market over time,” says Tamir. “It doesn’t matter how much money you have if you start investing early and put the money in the right places.”

The advantages of FINQ over S&P 500 vs 493

When it comes to investing, the choice between traditional indices like the S&P 500 and innovative investment platforms like FINQ is big. While the S&P 500 and the more traditional S&P 493 have their strengths, they also possess inherent limitations. In contrast, FINQ's unique strategies and performance offer a compelling alternative to S&P 500 investing, especially regarding adaptability and insight-driven decision-making.

Insight-driven investing with FINQ

FINQ's success isn't just about numbers; it's deeply rooted in the platform's ability to provide investors with valuable insights. Unlike traditional indices offering a broad market overview, FINQ goes deeper into the data and leverages AI and big data to offer a more granular market understanding. This approach empowers investors with actionable insights to make informed decisions aligning with their goals in ways that traditional index-based approaches could never do.  

FINQ's success isn't just about numbers; it's deeply rooted in the platform's ability to provide investors with valuable insights.

The key takeaways

Selecting the right investment platform is a key step in today’s fluid financial world. It goes beyond just riding the market waves; it’s about finding a fit for your immediate goals and long-term dreams to shape your investment path.

So, consider FINQ for a distinct approach to your investment needs. With its blend of investment strategies and deep market insights driven by AI and data analytics, FINQ stands out from the usual index investing. As you map out your financial future, view FINQ as more than an option – it's a route to a smarter, personalized investment experience.

Bobby’s introduction to stock options at a hi-tech firm left him intrigued and determined to expand his knowledge in finance. With his newfound passion, he pursued a Master’s in Finance from Harvard University, graduating with a 3.87 GPA and Dean’s List Honors. Since then, he has worked as a strategic communications and investor relations specialist catering to a diverse global client base that includes CEOs, CFOs, CFAs, CPAs, private equity executives, venture capitalists, global investment firms, real estate agencies, logistics companies, marketing agencies, startups, and publications. Bobby’s vast expertise and experience make him highly skilled at ghostwriting and producing content for major publications ranging from Forbes to the South Florida Business Journal. However, his byline has also appeared in LA Weekly, SFGATE, The Salt Lake Tribune, Wall Street Zen, Vision Magazine, Gold IRA Secrets, and Metro Manhattan Commercial Real Estate, among others.