Posted 3/8/2024, 3:53:00 PM
Calm Market Indexes Mask Highly Volatile Individual Stocks
- While major indexes like the S&P 500 seem calm, individual stocks show much more volatility
- This "duck market" has an unusually wide discrepancy between index and individual stock volatility
- The calm surface of indexes masks that half of S&P 500 stocks are below January 2022 levels
- A handful of mega cap tech stocks are driving most index gains, compensating for weakness elsewhere
- Improving market breadth with more stocks participating is key for the rally to continue