GM! ☕ 😅
https://blossom.primal.net/e727a0a87bff05b1145f1fdbb70377033c6cf32d3fb3c671830c9ee7b2130e3a.jpg
Not at random. Most 401Ks are in a fund that carries significant portions of the S&P500.
And though there are "rules" for inclusion, the board has the final say of who is in and out.
The S&P500's growth, however, is linked more with inflation than 401Ks themselves, which inflation also impacts.
If you want to beat inflation, you should be carrying about 10 or fewer companies in the S&P.
Which means, 490 lag inflation and the stock values are subsidized by the 10 and, to your point, the constant stream of funds entering market.
And though there are "rules" for inclusion, the board has the final say of who is in and out.
The S&P500's growth, however, is linked more with inflation than 401Ks themselves, which inflation also impacts.
If you want to beat inflation, you should be carrying about 10 or fewer companies in the S&P.
Which means, 490 lag inflation and the stock values are subsidized by the 10 and, to your point, the constant stream of funds entering market.