As the S&P 500 and Nasdaq 100 indices continue to notch new all-time highs, it’s clear that the rising tide has not lifted all boats.
Sharp-eyed analysts and investors have noted some discordant features in a stock market at its peak, raising questions about the euphoria that currently reigns supreme on Wall Street.
Mega-Cap Dominance Unprecedented Since Late 2008
The dominance of mega-cap stocks hasn’t been this pronounced in nearly sixteen years.
The top 100 U.S. stocks by market capitalization, monitored through the iShares S&P 100 ETF (NYSE:OEF), have never been stronger against the Russell 1000 Index, as tracked by the iShares Russell 1000 ETF (NYSE:IWB), since December 2008-.
David Morrison, senior market Analyst at Trade Nation, commented, “There are concerns about the US market's lack of breadth with so much of the overall performance concentrated in the stock price of a few corporations. In fact, the five biggest companies by market capitalization in the S&P 500 account for nearly 30% of its value. The size and ...Full story available on Benzinga.com
Related tickers: IWB, OEF, RSP, SPY.
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