The top 50 stocks in the SP500 index now make up 57% of the total value, leaving 43% for the other 450 companies. This is not a melt up of the broader market but a massive global rush into the mega caps.
The market today appears to be pricing in a pause in interest rate hikes this week. But if I am the Fed trying to tighten monetary policy and I look at what the market is doing, I would raise rates 0.50% not pause.
We know what has been driving the market higher since last October. Will it continue?
Cheers,
Michael Bond
Categories: TSP Charts