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A Broader Bull May Be No Bull At All
I don't know if I'd call it a "consensus" narrative exactly, but a popular take on equities for the balance of the year says that as the Fed starts to dial back policy restriction, the rally will broaden out.
This is, famously and on several metrics, one of the narrowest equity markets in living memory, a state of affairs critics consistently deride as unhealthy and, ultimately, unsustainable. Maybe they're right, maybe they're wrong, but the issue for some Wall Street bears is that the market
If the Megas decline -10% the rest of the S&P 500 has to go up 20% to hold the index flat – tall order.
I think you have the ratios wrong. Mag 7 is less than one third of the total, so 10% down on the Mag 7 needs 5% increase in the rest
It seems more likely to be a bubble scenario. Whether AI or the ‘Magnificent Seven’ will lead the final summit push is another matter to predict. Will another sector take the lead and steal the show?