S&P 500 index investors may want to diversify now, experts say
A small replica of the Charging Bull statue is seen on a street vendor stall outside the New York Stock Exchange on July 11, 2025.
Jeenah Moon | Reuters
The S&P 500 index has bounced back from its April lows.
Yet experts say investors would be wise to watch the risks before pursuing an investment strategy concentrated in the large-cap company-focused S&P 500 index, which represents about 80% of market capitalization.
“Our advice for people who are looking at their performance on a one-year or three-year horizon is no, we don’t think that the set-it-and-forget-it, S&P 500-only strategy is the right strategy,” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.
