Charles Schwab economists are pointing out that current market conditions are becoming more similar to 2021, the year before the most recent time stocks soured.
The bank’s investment analysts warned of the problems caused by the growing disconnect between individual stocks doing badly and indexes such as the S&P 500 going gangbusters.
‘If we continue to see more weakness in the former and strength in the latter, it will start to eerily mimic 2021’s dynamic,’ wrote Liz Ann Sonders, who’s been Charles Schwab’s chief investment strategist for 24 years, in a June 24 market commentary.
Surging tech stocks have taken both the S&P and the Nasdaq to record heights, but as Sonders points out, most companies in these two indexes don’t reflect the out-of-this-world performance of a firm like Nvidia, which recently became the world’s most valuable company.
The percentage of stocks in the S&P trading higher than they did in the last fifty trading days has plummeted to around 50 percent, when it was closer to 90 percent at the start of 2024.
Gonna be some hard times for everybody who was forced into pension funds.
And the rest of us who like to eat…
It will even harder those with no pension 10:01
Which is the majority.