The Growing Gap On Wall Street

There’s been a growing gap on Wall Street lately between the winners and losers. The market has been driven by a very small number of stocks doing very, very well. Everybody else is just bouncing along. This phenomenon was especially acute on Friday, but we saw it again today.

By my count, 311 stocks in the S&P 500 underperformed the index today. On Friday, more than 71% of the stocks in the index couldn’t keep up.

Check out this chart between the S&P 500 (gold line) and the S&P 500 equal weighted index (black line):

The wider the gap, the greater the dispersion. In other words, a rising tide is not lifting all boats.

Posted by on October 30th, 2017 at 4:32 pm


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