Sure, we're in a bull market - but it's far too narrow. Anyone who's been reading the financial press has heard that complaint ad nauseam this year. The idea is this... Yes, this market rally - which has sent the S&P 500 Index soaring 58% since October 2022 - is impressive by historical standards. Yet it has been led by a tiny group of mega-tech stocks associated with AI technology, with little in the way of gains outside of that elite group. Worse, that narrowness sets the market up for a major correction. One earnings miss by, say, chipmaker Nvidia (Nasdaq: NVDA) - which is up a whopping 166% this year alone - could take this whole house of cards down with it. (In fact, Nvidia is already down 10% over the past week.) There is certainly some truth to this depiction of the bull market. But the reality is much more nuanced - and the outlook far more positive - than the naysayers would have you believe. |
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