2024-04-23 13:35:00 ET
Summary
- Over the last month, the equal-weighted S&P 500 Index is now outperforming the capitalization-weighted S&P 500 Index.
- Since the beginning of the year, the Mag 7 have outpaced the S&P 500 Index and some of the dividend yielding Indexes.
- Company outlooks will be an important indication of the views on the year ahead and company views on the economic outlook ahead.
In our March 16, 2024 post we noted, "a near term correction would not be a surprise." This comment was a few weeks early, although the market did not move much higher subsequent to the post but peaked on March 28. Since that time, the S&P 500 Index has declined -5.5% through the April 19, 2024 close. The earlier post highlighted the fact the S&P 500 Index had begun to outperform the Nasdaq 100 Index in late January. A rotation of sorts was underway and flows were moving out of the Nasdaq oriented stocks, where all Magnificent 7 stocks are represented in the top 10 holdings of the index. Market corrections are a normal function of the equity market, as seen below. What has been a bit of a surprise is the uninterrupted advance that occurred since October of last year following the -10.7% correction from July to October....
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Expect Equity Market Corrections