The price of the C-fund is at the mercy of just five big tech companies that carry a significant amount of the S&P 500's value. Microsoft, Nvidia, Apple, Alphabet, and Tesla are responsible for more than half the gains in the S&P 500 since April.
The rest of the market has struggled in the last quarter as we've seen by the S-fund performance."If those companies, for whatever reason, stop performing, there’s nothing to support the market,” said Peter Cecchini, director of research at hedge fund Axonic Capital.
However, the C-fund has reached new all-time highs in recent week and hasn't strayed too far from those highs. Don't forget the power these big tech companies have over the S&P 500 and its success is dependent on their performance. Be aware that these companies are essentially what you are buying with the C-fund.the share of New York Stock Exchange stocks closing above their 200-day moving averages, dropped as low as 41% earlier in December, a 17-month low.
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Disclaimer: This is not advice or a recommendation.
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