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
https://englundmacro.blogspot.com/2023/05/the-s-500-is-top-heavy-with-tech.html
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