Concentration risk in plain sight.
YTD: more $SPX constituents are underperforming the index than beating it.
This is what happens when 7-10 names do all the heavy lifting. The "market" looks fine on paper, but most companies in the index are lagging.
If you're picking stocks or looking at private market comps, don't get fooled by headline index performance. The median company is having a different year than the index suggests.
Narrow rallies don't last forever. When they crack, it's messy.
YTD: more $SPX constituents are underperforming the index than beating it.
This is what happens when 7-10 names do all the heavy lifting. The "market" looks fine on paper, but most companies in the index are lagging.
If you're picking stocks or looking at private market comps, don't get fooled by headline index performance. The median company is having a different year than the index suggests.
Narrow rallies don't last forever. When they crack, it's messy.