Thursday April 23 2020
Despite a recent runup in stock prices for large, mainly tech-based stocks, there is continued carnage beneath the surface of indices. The five largest stocks make up over 20 percent of the S&P, the highest level in decades, and their combined worth is equal to the bottom 350 companies in the S&P combined. While the S&P is down just under 15 percent for the year, the equal-weighted index is down almost 25 percent, and the small-cap index is down over 35 percent.
This is typical end of an up move action. In the 1960s it was the Nifty Fifty, in 1999 the dot.coms ,now the FANGS
The out performance of those five is masking the weakness of the rest of the market. Lots of articles in the WSJ today doubting the recovery will be quick and fast.
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