$TRU $TRUMP Friday’s sharp sell-off exposes the illusion of record highs on Wall Street: 50% of stocks are declining
U.S. indexes are nearing record highs while most stocks are mired in a bear market beneath the surface: according to Morgan Stanley’s Mike Wilson, 51% of Russell 3000 stocks are down more than 20% from their June highs (up from around 40% two weeks ago), while the median S&P 500 stock is 16% below its 52-week high—the weakest market breadth since the dot-com bubble. Friday’s sharp sell-off (Nasdaq -2.15%, S&P 500 -1.09%, Russell 2000 -1.63%, and the fear gauge VIX +21.4%) brought the indexes closer to the reality facing stocks beneath the surface. As a result, diversified portfolios are hurting even as the screen looks green, thanks to a handful of megacap stocks. This is the illusion of record highs, which could lure investors into a market that is weaker than it appears.
$ZAP.ETF
U.S. indexes are nearing record highs while most stocks are mired in a bear market beneath the surface: according to Morgan Stanley’s Mike Wilson, 51% of Russell 3000 stocks are down more than 20% from their June highs (up from around 40% two weeks ago), while the median S&P 500 stock is 16% below its 52-week high—the weakest market breadth since the dot-com bubble. Friday’s sharp sell-off (Nasdaq -2.15%, S&P 500 -1.09%, Russell 2000 -1.63%, and the fear gauge VIX +21.4%) brought the indexes closer to the reality facing stocks beneath the surface. As a result, diversified portfolios are hurting even as the screen looks green, thanks to a handful of megacap stocks. This is the illusion of record highs, which could lure investors into a market that is weaker than it appears.
$ZAP.ETF