Year-to-date around 85% of the move in the S&P 500 index is explained by just five stocks – FAAGM (Facebook, Apple, Amazon, Alphabet/Google and Microsoft).
With market cap concentration at such extreme levels, it is worth assessing another indicator of the underlying health of an index, market breadth. In its simplest form, market breadth is a measure of the percentage of stocks outperforming an index. Market breadth in the S&P 500 has never been so narrow. Time to be brave: Why there is still value in value investing The global sector-neutral value metric provides an insight into how lower multiple stocks have performed on a sector-neutral basis over time. We currently see this metric at historical lows and in negative territory o...
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