Although headlines indices are trading near all-time highs, breadth remains quite weak.
There are several ways to assess the breadth measure of market health, but as Bespoke Investment Group simply points out, only the mega-cap stocks are trading higher at this point in Q2.
“Notably, even though the S&P at the index level is up more than 2% this quarter, the only decile that’s up is the one containing the 50 largest stocks in the index. All nine other deciles containing the 450 smallest stocks are down on average this quarter. So much for a healthy market. If you don’t own the mega-caps, you’ve likely been lagging badly this quarter.
The same pattern is present in the year-to-date results as well.
June 10, 2024
Although headlines indices are trading near all-time highs, breadth remains quite weak.
There are several ways to assess the breadth measure of market health, but as Bespoke Investment Group simply points out, only the mega-cap stocks are trading higher at this point in Q2.
“Notably, even though the S&P at the index level is up more than 2% this quarter, the only decile that’s up is the one containing the 50 largest stocks in the index. All nine other deciles containing the 450 smallest stocks are down on average this quarter. So much for a healthy market. If you don’t own the mega-caps, you’ve likely been lagging badly this quarter.
The same pattern is present in the year-to-date results as well.