It appears the market is normalizing in terms of concentration. After a couple of years in which 7 stocks were responsible for the majority of the returns on the S&P500, more stocks are now trading above the index on a YTD basis. Last year, showed the lowest number of stocks outperforming the index in more than 25 years. Now, we have gone back to the median. The difference with the last time we were at these levels? It happen during a bear market. The year 2000 started strong, only to start one of the worst corrections of recent history, where most of the value and wealth created in the 90’s evaporated. This is a liquidity driven market; let’s see what happens to rate cuts, buybacks and fiscal spending.
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