Why narrow market breadth might not be as bad as it seems: Jonathan Levin

In 2024, critics have decried the US market's reliance on a few mega-cap stocks, known as the Magnificent Seven, arguing it signals trouble. However, recent shifts show these giants have dropped over 6%, while broader indices and small caps outperform. This development challenges the "breadth doom" narrative, suggesting that a narrow market might not be as harmful as feared. Despite volatility, investors in cap-weighted indices continue to see solid returns.

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By Jonathan Levin

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