Math is hard for some people — and we’re grateful for that.
In the market, you don’t need a Ph.D. in mathematics. You just need to know how to add, subtract, multiply, and divide. That’s it.
The fancy name for those? The four basic operations. Their results — sum, difference, product, and quotient — might sound academic, but they’re really just the building blocks of everything we do.
The worst investors on the planet are the ones who overcomplicate things. Trust me, I’ve had a front-row seat for decades. Their complexity is exactly why they end up coming to me.
You’d be amazed how much billion-dollar portfolio managers appreciate the simplicity I’m describing. It’s a breath of fresh air for them — and it should be for you too.
We don’t have to make this harder than it is.
It’s Just Math. Don’t Be Mad at It.
In my experience, it’s not the math that upsets people — it’s what the math represents. When the numbers don’t fit their narrative, it’s easier to dismiss it all as “voodoo” than to look in the mirror and admit they were wrong.
It must be hard watching your ego ruin your life.
I see it every day. It’s painful — for them, anyway. But if it weren’t for these delusional sociopaths, there wouldn’t be nearly as many opportunities for the rest of us to profit.
So should I be mad about it? Or grateful? I’ll take grateful.
Here’s a little math for you:
Coming into this week, more than 150 stocks in the S&P 500 were outperforming the index in 2025. Roughly 40% of Nasdaq components are outperforming the QQQs. And over half the Dow stocks are outpacing the Dow Jones Industrial Average.
How many more do they need before they stop crying about “just a few stocks” driving the market?
Take the Nasdaq Next Gen 100 Index Fund (QQQJ) — it tracks the next 100 largest stocks in the Nasdaq after the Nasdaq-100 (QQQ).
It just closed at new all-time highs yesterday:
So how can it possibly be “just seven stocks” driving the market if none of the top 100 are even in this index, and it’s still breaking records?
The answer is simple: It’s math.
It can’t be just seven stocks.
If you passed second grade, you’re qualified to see it too.
What’s the Problem?
Then there’s the equally weighted index debate. I keep hearing that market breadth is “weak” because the equally weighted indexes aren’t keeping up with the market-weighted ones.
Alright, let’s do the math together and see what everyone’s so upset about.
The equally weighted Dow, S&P 500, and Nasdaq are all putting up historic numbers this year — up 11.5%, 8%, and 11.8%, respectively.
That’s not weak breadth. That’s strength.
Go back to last year — the equally weighted Dow was up 14%, the S&P 500 13%, and the Nasdaq-100 8.8%.
In 2023? They gained 15%, 13%, and 33%.
So again — what’s the problem?
What exactly is so “bearish” about all the major averages, on an equally weighted basis (with those giant stocks taken out of the equation), making new all-time highs and posting above-average returns year after year?
It’s not that these people are bad at math — they just don’t like what the math is saying.
Humans need stories. And when the numbers don’t fit the story, they throw out the numbers.
But the math doesn’t care about feelings, narratives, or CNBC segments. It just is.
And right now, the math says stocks are going up.
You can argue with it if you want.
But you’ll lose — not because I said so, but because the math already decided.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs