The David Lin Report · Monday, September 28, 2026
Bill Smead predicts that as interest rates rise, money will be drawn from the most popular stocks, specifically the top 20 companies that make up a significant portion of the S&P 500. He believes this will negatively impact the S&P 500 index and these large-cap stocks.
“And historically, the first place it comes out of is the common stock market, because most of the money, you know, Willy Sutton, Rob Banks because that's where the money was.”
“Most of the money in the United States is in 20 companies that make up 45% of the S&P 500.”
“So when it comes time to rob the bank, that's what's going to get robbed.”
“That means that these interest rates are going to go up until the fever breaks and the two places that thing will happen is they will go get money from where it is. And that is the 20 largest stocks in the S&P 500, which will ruin the S&P index trade and and will ruin the trade in those stocks.”