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Equities in the US have enjoyed a sustained bull market for over ten years. Over the...

  1. Equities in the US have enjoyed a sustained bull market for over ten years. Over the past 10 years, the Information Technology sector has consistently outperformed other sectors in the SP500. Today, the Information Technology sector most likely has a much smaller weight in the SP500 index than it did ten years ago. One implication of this change in Information Technology’s sector weight is that if the sector falters in the near future, the SP500 will likely struggle to make new all-time highs.Evaluate the underlined words in italics. True or false?
  1. True
  2. False
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Answer #1

Solution:

The given statement is false because currently weight of Information Technology sector has reduced this means that the impact of IT sector will be less on the SP500 index. So when this sector falters then it is not necessary that the SP500 will not make the new all time high.

So given statement is false

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