A Historic View of S&P 500 Valuations

The video discusses the evolution of equity theory, focusing on the S&P 500 index and its historical significance. It examines current market valuations, highlighting the challenges of market cap-weighted indices and the benefits of revenue-based analysis. The discussion includes a comparison of revenue and market cap weighting methodologies, emphasizing the importance of revenue as a stable metric. The video concludes with insights into investment strategies, particularly the advantages of quarterly rebalancing to maintain a value-oriented portfolio.

What is the argument made about market cap weighting in the text?

What does the speaker suggest about the impact of quarterly rebalance on revenue?