Why Are You Having Such A Bad Year
Based on the market action of the last year, most investors probably would’ve been better off doing nothing. Bull and bear markets are generally defined by whether or not the SP500 is trading above or below its 200-day moving average. Over the last year, the SP500 has vacillated above and below the average for short periods without a sustained trend.
While the SP500 has held up relatively well due to a few mega-cap names holding up the index, the majority of stocks have been in a bear market for most of the year.
By comparing the SP500 and Nasdaq 100 to their equal weight counterparts, you can notice the enormous impact a select few names have had on the two indices.
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Typically, this type of bearish action that we are witnessing on most individual stocks trickles down to the actual indices, and the indices might catch-up to the stocks. However, one must keep an open mind that maybe individual stocks may start to act better and the market’s breadth will broaden. As of right now I’m seeing subtle improvement on some individual names.
This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.
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