S&P 500 Carried by 7 Stocks While Broader Market Lags
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The 7 largest stocks in the S&P 500 (Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, Meta) have returned 92% on average this year.
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These 7 stocks are driving the S&P 500's performance, while the rest of the index lags behind.
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This lack of broad market participation is a sign of weakness according to some analysts.
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The risk is the market leaders fall and bring the index down too.
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Investors should stick to their plans and diversify, rather than try to time the market.