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The Skinniest US Equity Market Since At Least 1965
If it feels to you like US equity market breadth's a perennial concern, you're not wrong.
Notwithstanding a few fleeting periods during which the market broadened out, narrowness and concentration are always top of mind in a world where "corporate America" really just means a handful of mega-caps.
In that sense, this discussion's not new. Nor news, with an "s."
However, the situation's more acute now than it's been at least since the dot-com bubble. On some metrics, it's the most extreme in a
Back in the 1960s the Dow was at 1000, 5mil shares traded daily, no one cared about the “broad tape” and the top was called the “Nifty Fifty.” Ah, those were the days as I started my journey into the world of finance. Oh, and the GDP was a spectacular $800 bil. So the Dow is up 39x and the GDP is 35x larger today. That means from 1966 through 2023 the Dow has grown annually at 6.6%/yr and the GDP has grown at 6.4%/yr, compounded. Ta Da.