The pessimism is also visible in versions of major benchmarks that reduce the influence of megacaps, such as the equal-weight S&P 500, which has only increased by a relatively small 4% this year. This suggests that there may be cracks underneath the surface of the market, and that stocks may be indicating something that data isn't showing.
Key takeaways:
- There are underlying issues in the stock market, with confidence in American growth not as strong as it appears.
- Banks and industrial companies are barely making gains in 2023, while tech companies like Tesla Inc. and Nvidia Corp. are seeing significant growth.
- Pessimism is evident in versions of major benchmarks that reduce the influence of large corporations, such as the equal-weight S&P 500, which is only up 4% this year.
- Despite the excitement around artificial intelligence, there are concerns about the future of US growth.