The US stock market looks really, really weird

 Generally, a narrow market, in which performance is dominated by a few, is not a healthy one.

That can be illustrated simply by comparing the S&P 500 equal-weighted index, in which each constituent is given a 0.2% allocation regardless of its size, and the usual cap-weighted S&P 500, in which companies are represented in proportion to their market value. 

For another demonstration of just  how top-heavy the market has become, Apple Inc., the largest stock, is now bigger than the entire market capitalization of the 2,000 smaller companies in the Russell 2000 index.

The S&P 500 is still up 7.7% for the year. What explains its continuing strength? 

After more than a decade when low rates have propped up equity valuations, the animating hope is that trouble for the banks will mean lower rates 

John Authers Bloomberg 16 maj 2023

 The S&P 500 SPX is up more than 7% so far in 2023, after last year’s 19.4% slide. 

The top 10 stocks hold a 29% weight in the index, and are responsible for around 70% of year-to-date performance


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